The election results are actually bullish for marijuana stocks.
Cannabis stock investors did not get the blue wave they were hoping for in the U.S. election, but all 5 status marijuana legalization procedures on the ballot have passed. Recreational and/or medical marijuana was legalized in Arizona, Mississippi, Montana, new Jersey and South Dakota, increasing the possible geographic footprint of cannabis multistate operators, or perhaps MSOs. Unfortunately for cannabis investors, Democrats may not gain control of the Senate, potentially limiting considerable federal cannabis reform. As a result, some cannabis stocks initially dropped following the election. Here are the best cannabis stocks to invest in following the election, as reported by Cantor Fitzgerald.
Flower priced depreciation has been an important issue for all Canadian licensed producers, or LPs. But, analyst Pablo Zuanic claims Canadian LPs like Aphria may have “positive collateral benefits” from the U.S. election, assuming Joe Biden takes more than the White House. Federal legalization might still be at least 2 years away, but decriminalization of adult-use marijuana and potential federal rescheduling of cannabis could raise Aphria as well as other Canadian LPs, Zuanic says. He says Aphria has a number of positive catalysts forward in the near term, including a rise 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 tells you OrganiGram’s retail sales trends in the third quarter had been relatively strong in comparison with various other Canadian LPs. Nonetheless, Hifyre cannabis sales information for October recommend OrganiGram sales had been down twenty five % month over month compared with a five % decline for the entire Canadian retail store. OrganiGram has disappointed investors with the sluggish revenue growth of its and money burn up, but Zuanic is actually optimistic the business may find the way of its to earnings and growth in the long haul. Cantor Fitzgerald has an “overweight” rating and $4.07 price target for OGI stock.
While Canadian cannabis stocks are actually struggling, U.S. multistate operators as Cresco Labs are thriving. In the second quarter, Cresco beat consensus analyst sales estimates by 30 % 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 second quarter was the best growth rates among all of Cresco’s large MSO peers. Zuanic states the Illinois industry will be a serious near term growth driver for Cresco, and the Origin House acquisition of its ought to supplement its organic growth. Cantor Fitzgerald has an “overweight” rating and sixteen dolars price target for CRLBF stock.
Curaleaf is actually a U.S. MSO which works in 23 states. One of those states is New Jersey, which may represent the largest opportunity with the states that legalized recreational marijuana on Election Day. Not simply will Curaleaf gain from the new Jersey market, but Zuanic says Curaleaf will probably draw customers from neighboring Pennsylvania and New York. Curaleaf reported astounding 142 % revenue growth and 180 % disgusting 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 price target for CURLF stock.
Green Thumb Industries (GTBIF)
Green Thumb Industries is a U.S. MSO which works in 12 states, including Florida as well as California. Zuanic claims Green Thumb has the best risk profile of Cantor’s top rated MSOs. Green Thumb has expanded its footprint in Pennsylvania and Illinois without overextending its balance sheet, it already has a sizable presence in New Jersey and Zuanic is projecting revenue will grow from $527 million in 2020 to $982 million by 2022. Also, he anticipates further legalization in Pennsylvania, New York, Connecticut as well as Maryland in coming years. Cantor Fitzgerald has an “overweight” rating and twenty nine dolars price target for GTBIF inventory.
Trulieve Cannabis Corp. (TCNNF)
Trulieve Cannabis is actually an MSO that works primarily in Florida. Zuanic recently hosted a call with Trulieve CEO Kim Rivers. After talking with Rivers, Zuanic says he’s confident in Trulieve’s ability to keep a dominant market share of the high growth Florida medical marijuana market. Additionally, Zuanic affirms Trulieve features a substantial opportunity to grow the companies of its in other states, like Connecticut, Massachusetts, and California. Finally, 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 inventory.
GW Pharmaceuticals (GWPH)
Unlike the various other cannabis stocks on this list, GW Pharmaceuticals is a biopharmaceutical company focused 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. He also sees several bullish catalysts for GW with the tail end of 2021, including further penetration into adult patients and more rollout in Europe. Cantor has an “overweight” rating and $165 price target for GWPH stock.