The election results are actually bullish for marijuana stocks.
Cannabis stock investors didn’t get the blue wave these were hoping for in the U.S. election, but all five status marijuana legalization procedures on the ballot have passed. Fun and/or medical marijuana was legalized in Arizona, Mississippi, Montana, South Dakota and new Jersey, increasing the potential geographic footprint of cannabis multistate operators, or perhaps MSOs. Unfortunately for cannabis investors, Democrats might not gain control of the Senate, possibly restricting considerable federal cannabis reform. As a result, a few cannabis stocks initially dropped following the election. Allow me to share the best cannabis stocks to purchase following the election, as reported by Cantor Fitzgerald.
Flower priced depreciation continues to be a significant concern for all Canadian licensed producers, or maybe LPs. Nevertheless, analyst Pablo Zuanic states Canadian LPs as Aphria may have “positive collateral benefits” from the U.S. election, assuming Joe Biden takes more than the White House. Federal legalization may well still be at least 2 years away, but decriminalization of adult use marijuana and potential federal rescheduling of cannabis may raise Aphria along with other Canadian LPs, Zuanic says. He states 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 inventory.
Canadian LP OrganiGram has had a brutal year in 2020. Zuanic affirms OrganiGram’s retail sales trends in the third quarter were relatively strong in contrast to various other Canadian LPs. But, Hifyre cannabis sales information for October recommend OrganiGram sales had been down 25 % month over month in contrast to a 5 % decline for the complete Canadian retail store. OrganiGram has disappointed investors with the sluggish revenue growth of its as well as cash burn, but Zuanic is actually hopeful the company may find the way of its to growth and profits in the long run. Cantor Fitzgerald has an “overweight” rating and $4.07 price target for OGI inventory.
While Canadian cannabis stocks are struggling, U.S. multistate operators like Cresco Labs are actually thriving. In the next quarter, Cresco beat consensus analyst sales estimates by thirty % and exceeded the earnings of theirs before interest, taxes, depreciation and amortization expectations by nearly 200 %. Zuanic says Cresco’s forty two % sequential sales progress in the next quarter was the very best growth rates with all of Cresco’s large MSO peers. Zuanic says the Illinois market will be a major near-term growth driver for Cresco, and its Origin House acquisition should supplement its organic growth. Cantor Fitzgerald has an “overweight” rating and $16 price target for CRLBF inventory.
Curaleaf is a U.S. MSO which works in 23 states. Among those states is actually New Jersey, which may represent the largest opportunity among the states that legalized recreational marijuana on Election Day. Not only will Curaleaf gain from the new Jersey sector, but Zuanic says Curaleaf will likely draw customers from neighboring Pennsylvania and New York. Curaleaf reported impressive 142 % revenue growth and 180 % disgusting profit growth year over year in the second quarter and also holds a leadership position in key states. Cantor Fitzgerald has an “overweight” rating and eighteen dolars cost target for CURLF inventory.
Green Thumb Industries (GTBIF)
Green Thumb Industries is actually a U.S. MSO that operates in 12 states, including Florida and California. Zuanic says Green Thumb has the ideal 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 already has a sizable presence in New Zuanic and Jersey is projecting revenue will grow from $527 million in 2020 to $982 million by 2022. He also anticipates further legalization of Pennsylvania, New York, Connecticut and Maryland in coming years. Cantor Fitzgerald has an “overweight” rating and twenty nine dolars cost target for GTBIF stock.
Trulieve Cannabis Corp. (TCNNF)
Trulieve Cannabis is actually an MSO which works primarily in Florida. Zuanic recently hosted a call with Trulieve CEO Kim Rivers. After speaking with Rivers, Zuanic says he is comfortable in Trulieve’s ability to keep a dominant market share of the high growth Florida medical marijuana industry. Additionally, Zuanic affirms Trulieve has a substantial alternative to produce the companies of its in some other states, including California, Massachusetts and Connecticut. Lastly, he is upbeat Florida voters could legalize recreational marijuana in the 2022 midterm election. Cantor Fitzgerald has an “overweight” rating and $60 price target for TCNNF stock.
GW Pharmaceuticals (GWPH)
As opposed to the various other cannabis stocks on this list, GW Pharmaceuticals is actually a biopharmaceutical company centered on developing cannabis-based drug therapies. 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 the expectations of his. Also, he sees assorted bullish catalysts for GW with the end of 2021, including further penetration into adult customers and additional rollout in Europe. Cantor has an “overweight” rating and $165 price target for GWPH stock.