The election results are bullish for marijuana stocks.
Cannabis stock investors did not get the blue wave these were hoping for in the U.S. election, but all 5 state 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 potential geographic footprint of cannabis multistate operators, or MSOs. Unfortunately for cannabis investors, Democrats may not gain control of the Senate, possibly limiting significant federal cannabis reform. As a result, a few cannabis stocks initially dropped following the election. Here are the very best cannabis stocks to purchase following the election, as reported by Cantor Fitzgerald.
Flower price depreciation has been an important issue for all Canadian licensed producers, or maybe LPs. Nevertheless, analyst Pablo Zuanic claims 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 might still be at least two years away, but decriminalization of adult use marijuana and potential federal rescheduling of cannabis can increase Aphria as well as other Canadian LPs, Zuanic says. He claims Aphria has a number of positive catalysts forward in the near term, including an increase 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 affirms OrganiGram’s retail sales trends in the third quarter had been relatively strong in contrast to various other Canadian LPs. But, Hifyre cannabis sales information for October recommend OrganiGram sales were down 25 % month over month in contrast to a five % decline for the complete Canadian retail market. OrganiGram has disappointed investors with the sluggish revenue growth of its as well as money burn up, but Zuanic is actually hopeful the small business will see its way to profits and growth in the long run. Cantor Fitzgerald has an “overweight” rating and $4.07 cost target for OGI stock.
While Canadian cannabis stocks are actually struggling, U.S. multistate operators like 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 almost 200 %. Zuanic says Cresco’s 42 % sequential sales growth in the second quarter was the most effective growth rate with many of Cresco’s big MSO peers. Zuanic says the Illinois industry is going to be a leading near-term growth driver for Cresco, and the Origin House acquisition of its ought to supplement the natural growth of its. Cantor Fitzgerald has an “overweight” rating and $16 cost target for CRLBF inventory.
Curaleaf is actually a U.S. MSO that runs in 23 states. One of those states is actually New Jersey, which might represent probably the largest opportunity among the states which legalized recreational marijuana on Election Day. Not merely will Curaleaf gain from the brand new Jersey sector, but Zuanic says Curaleaf may draw customers from neighboring New York and Pennsylvania. Curaleaf noted amazing 142 % revenue growth as well as 180 % gross profit growth year over year in the next quarter and also 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 actually a U.S. MSO which works in twelve states, including California as well as Florida. Zuanic reveals Green Thumb has the ideal 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 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. He also anticipates further legalization in Pennsylvania, New York, Maryland as well as Connecticut 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 runs largely in Florida. Zuanic recently hosted a call with Trulieve CEO Kim Rivers. After talking with Rivers, Zuanic says he is confident in Trulieve’s potential to keep a dominant market share of the high growth Florida medical marijuana market. Furthermore, Zuanic says Trulieve includes a tremendous alternative to produce the companies of its in some other states, like Connecticut, Massachusetts, and California. 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 business focused on creating cannabis-based drug treatments. The company’s lead drug Epidiolex has been approved by the Food and 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 tail end of 2021, including further penetration into adult clients and additional rollout in Europe. Cantor has an “overweight” rating and $165 price target for GWPH inventory.