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 state marijuana legalization measures on the ballot have passed. Fun 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 maybe 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. Here are the best cannabis stocks to purchase following the election, as reported by Cantor Fitzgerald.
Flower price depreciation continues to be a big issue for just about all Canadian licensed producers, or maybe LPs. However, analyst Pablo Zuanic claims Canadian LPs as Aphria may have “positive collateral benefits” from the U.S. election, assuming Joe Biden takes over 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 may increase Aphria and other Canadian LPs, Zuanic states. He states Aphria has several positive catalysts ahead in the near term, including an increase in exports. Cantor Fitzgerald has an “overweight” rating and $8.95 price target for APHA inventory.
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 compared with other Canadian LPs. But, Hifyre cannabis sales information for October suggest OrganiGram sales had been down 25 % month over month in contrast to a 5 % decline for the complete Canadian retail market. OrganiGram has disappointed investors with its sluggish revenue growth as well as cash burn, but Zuanic is actually optimistic the small business may find its way to profits and growth in the long haul. Cantor Fitzgerald has an “overweight” rating and $4.07 price target for OGI inventory.
While Canadian cannabis stocks are struggling, U.S. multistate operators as Cresco Labs are actually thriving. In the second quarter, Cresco beat consensus analyst sales estimates by thirty % and exceeded the earnings of theirs before amortization expectations, depreciation, taxes, and interest by about 200 %. Zuanic affirms Cresco’s 42 % sequential sales development in the second quarter was the most effective growth rates with many 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 stock.
Curaleaf is a U.S. MSO that operates in twenty three states. One of those states is New Jersey, which might represent probably the largest opportunity with the states that legalized recreational marijuana on Election Day. Not merely will Curaleaf gain from the brand new Jersey sector, but Zuanic says Curaleaf will probably draw customers from neighboring New York and Pennsylvania. Curaleaf noted impressive 142 % revenue growth and 180 % gross profit development year over year in the next quarter and also holds a leadership position in key states. Cantor Fitzgerald has an “overweight” rating and eighteen dolars cost target for CURLF stock.
Green Thumb Industries (GTBIF)
Green Thumb Industries is actually a U.S. MSO which works in 12 states, including California as well as Florida. Zuanic says Green Thumb has the very best risk profile of Cantor’s top-rated MSOs. Green Thumb has expanded the footprint of its in Illinois and Pennsylvania without overextending its balance sheet, it already has a sizable presence in New Zuanic and Jersey is actually projecting revenue will mature 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 inventory.
Trulieve Cannabis Corp. (TCNNF)
Trulieve Cannabis is an MSO which operates largely in Florida. Zuanic recently hosted a call with Trulieve CEO Kim Rivers. After talking with Rivers, Zuanic says he is comfortable in Trulieve’s ability to keep a dominant market share of the high-growth Florida medical marijuana market. Moreover, Zuanic affirms Trulieve has a significant chance to grow the companies of its in other states, like Connecticut, Massachusetts, and California. Last but not least, he is upbeat Florida voters could legalize recreational marijuana in the 2022 midterm election. Cantor Fitzgerald has an “overweight” rating and $60 cost target for TCNNF inventory.
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 therapy of pediatric epilepsy. Cantor analyst Charles Duncan states GW’s third-quarter Epidiolex sales exceeded the expectations of his. Also, he sees several bullish catalysts for GW with the conclusion of 2021, which includes further penetration into adult patients and additional rollout in Europe. Cantor has an “overweight” rating and $165 cost target for GWPH stock.