The election results are bullish for marijuana stocks.
Cannabis stock investors did not get the blue wave they were hoping for in the U.S. election, but just five state marijuana legalization methods on the ballot have passed. Recreational and/or medical marijuana was legalized in Arizona, Mississippi, Montana, new Jersey and South Dakota, increasing the potential geographic footprint of cannabis multistate operators, or perhaps MSOs. Unfortunately for cannabis investors, Democrats might not gain control of the Senate, potentially limiting significant federal cannabis reform. To be a result, some cannabis stocks initially dropped following the election. Allow me to share the very best cannabis stocks to purchase following the election, according to Cantor Fitzgerald.
Flower price depreciation has been a major issue for all Canadian licensed producers, or LPs. Nonetheless, analyst Pablo Zuanic states Canadian LPs as Aphria might have “positive collateral benefits” from the U.S. election, assuming Joe Biden takes more than the White House. Federal legalization may well still be no less than two years away, but decriminalization of adult use marijuana and potential federal rescheduling of cannabis can raise Aphria as well as other Canadian LPs, Zuanic states. He says Aphria has a number of positive catalysts forward in the near term, including a surge of exports. Cantor Fitzgerald has an “overweight” rating and $8.95 cost target for APHA stock.
Canadian LP OrganiGram has had a brutal year of 2020. Zuanic says OrganiGram’s retail sales trends in the third quarter were fairly strong in contrast to various other Canadian LPs. Nonetheless, Hifyre cannabis sales information for October recommend OrganiGram sales had been down 25 % month over month in contrast to a five % decline for the overall Canadian retail market. OrganiGram has disappointed investors with its sluggish revenue growth and money burn, but Zuanic is actually hopeful the business will find the way of its to profits and growth in the long run. Cantor Fitzgerald has an “overweight” rating and $4.07 price target for OGI stock.
While Canadian cannabis stocks are struggling, U.S. multistate operators as Cresco Labs are actually thriving. In the next quarter, Cresco beat consensus analyst sales estimates by 30 % and exceeded the earnings of theirs before amortization expectations, depreciation, taxes, and interest by about 200 %. Zuanic tells you Cresco’s 42 % sequential sales expansion in the second quarter was the most effective growth rate with almost all of Cresco’s large MSO peers. Zuanic alleges the Illinois industry will be a serious near-term growth driver for Cresco, and its Origin House acquisition should supplement the organic growth of its. Cantor Fitzgerald has an “overweight” rating and $16 price target for CRLBF inventory.
Curaleaf is a U.S. MSO that runs in twenty three states. One of those states is New Jersey, that might represent probably the largest opportunity with the states that legalized recreational marijuana on Election Day. Not only will Curaleaf gain from the brand new Jersey market, but Zuanic says Curaleaf will probably draw customers from neighboring Pennsylvania and New York. Curaleaf noted impressive 142 % revenue growth as well as 180 % gross profit development year over year in the next quarter and holds a leadership position in key states. Cantor Fitzgerald has an “overweight” rating and $18 cost target for CURLF inventory.
Green Thumb Industries (GTBIF)
Green Thumb Industries is a U.S. MSO which operates in twelve states, like California as well as Florida. Zuanic says Green Thumb has the best risk profile of Cantor’s top-rated MSOs. Green Thumb has expanded its footprint in Illinois and Pennsylvania without overextending the balance sheet of its, it currently has a sizable presence in New Jersey and Zuanic is actually projecting revenue will grow from $527 million in 2020 to $982 million by 2022. Also, he anticipates further legalization of Pennsylvania, New York, Connecticut as well as Maryland in coming years. Cantor Fitzgerald has an “overweight” rating and $29 price target for GTBIF inventory.
Trulieve Cannabis Corp. (TCNNF)
Trulieve Cannabis is an MSO which works largely in Florida. Zuanic recently hosted a call with Trulieve CEO Kim Rivers. After speaking with Rivers, Zuanic says he is confident in Trulieve’s capacity to maintain a dominant market share of the high-growth Florida medical marijuana market. Additionally, Zuanic affirms Trulieve has a tremendous chance to produce the companies of its in some other states, including California, Massachusetts and Connecticut. Finally, he’s upbeat Florida voters can legalize recreational marijuana in the 2022 midterm election. Cantor Fitzgerald has an “overweight” rating and sixty dolars cost target for TCNNF stock.
GW Pharmaceuticals (GWPH)
Unlike the various other cannabis stocks on this list, GW Pharmaceuticals is actually a biopharmaceutical company centered on developing cannabis-based drug treatments. The company’s lead drug Epidiolex has been approved by the Food as well as Drug Administration for the treatment of pediatric epilepsy. Cantor analyst Charles Duncan says GW’s third-quarter Epidiolex sales exceeded his expectations. Also, he sees assorted bullish catalysts for GW with the conclusion of 2021, which includes further penetration into additional rollout and adult clients in Europe. Cantor has an “overweight” rating and $165 cost target for GWPH inventory.
