Read here the Marijuana Stocks to Buy
The election results are bullish for marijuana stocks.
Cannabis stock investors didn’t get the blue wave they were hoping for in the U.S. election, but just 5 status marijuana legalization methods on the ballot have passed. Fun 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 might not gain control of the Senate, possibly limiting significant federal cannabis reform. Being a result, a few cannabis stocks initially dropped following the election. Here are the very best cannabis stocks to buy following the election, based on Cantor Fitzgerald.
Flower price depreciation has been a major problem for just about all Canadian licensed producers, or LPs. However, analyst Pablo Zuanic says Canadian LPs as Aphria might have “positive collateral benefits” from the U.S. election, assuming Joe Biden takes over 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 could raise Aphria along with other Canadian LPs, Zuanic says. He claims Aphria has multiple positive catalysts ahead 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 in 2020. Zuanic tells you OrganiGram’s retail sales trends in the third quarter were relatively strong in comparison with other Canadian LPs. But, Hifyre cannabis sales data for October recommend OrganiGram sales were down 25 % month over month compared with a five % decline for the complete Canadian retail market. OrganiGram has disappointed investors with its sluggish revenue growth as well as money burn, but Zuanic is hopeful the small business may find the way of its to profits and growth in the long run. Cantor Fitzgerald has an “overweight” rating and $4.07 cost target for OGI inventory.
While Canadian cannabis stocks are struggling, U.S. multistate operators as Cresco Labs are thriving. In the next 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 growth in the next quarter was the most effective growth rate among many of Cresco’s big MSO peers. Zuanic alleges the Illinois industry is going to be a leading near term growth driver for Cresco, and its Origin House acquisition should supplement its organic growth. Cantor Fitzgerald has an “overweight” rating and $16 cost target for CRLBF inventory.
Curaleaf is actually a U.S. MSO that runs in twenty three states. Among those states is New Jersey, that might 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 probably draw clients from neighboring New York and Pennsylvania. Curaleaf noted astounding 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 price target for CURLF inventory.
Green Thumb Industries (GTBIF)
Green Thumb Industries is a U.S. MSO which works in 12 states, like California and Florida. Zuanic says 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 the balance sheet of its, it currently has a sizable presence in New Jersey and Zuanic is actually projecting revenue will develop from $527 million in 2020 to $982 million by 2022. He also anticipates additional legalization in 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 actually an MSO that works primarily in Florida. Zuanic recently hosted a call with Trulieve CEO Kim Rivers. After speaking with Rivers, Zuanic says he’s confident in Trulieve’s ability to maintain a dominant market share of the high growth Florida medical marijuana industry. Additionally, Zuanic says Trulieve has a significant chance to grow its businesses in some other states, like Connecticut, Massachusetts, and California. Finally, he is upbeat Florida voters can legalize recreational marijuana in the 2022 midterm election. Cantor Fitzgerald has an “overweight” rating and $60 price target for TCNNF stock.
GW Pharmaceuticals (GWPH)
In contrast to the various other cannabis stocks on this list, GW Pharmaceuticals is 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 therapy of pediatric epilepsy. Cantor analyst Charles Duncan says GW’s third-quarter Epidiolex sales exceeded the expectations of his. Also, he sees several bullish catalysts for GW with the end of 2021, which includes further penetration into adult customers and more rollout in Europe. Cantor has an “overweight” rating and $165 price target for GWPH stock.