The election results are 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 methods 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 might not gain control of the Senate, possibly restricting considerable federal cannabis reform. To be a result, a few cannabis stocks initially dropped following the election. Here are the very best cannabis stocks to invest in following the election, according to Cantor Fitzgerald.
Flower price depreciation has been an important problem for just about all Canadian licensed producers, or perhaps LPs. However, analyst Pablo Zuanic reveals Canadian LPs like Aphria could 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 may boost Aphria along with other Canadian LPs, Zuanic says. He states Aphria has a number of positive catalysts forward in the near term, including an increase in 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. Nevertheless, Hifyre cannabis sales information for October suggest OrganiGram sales were down twenty five % month over month in contrast to a 5 % decline for the complete Canadian retail market. OrganiGram has disappointed investors with the sluggish revenue growth of its and cash burn up, but Zuanic is actually hopeful the company will find its way to growth and profitability 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 actually 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 about 200 %. Zuanic tells you Cresco’s forty two % sequential sales advancement in the next quarter was the very best growth rates among many of Cresco’s large MSO peers. Zuanic alleges the Illinois industry will be a serious near-term growth driver for Cresco, and the Origin House acquisition of its ought to supplement the organic growth of its. Cantor Fitzgerald has an “overweight” rating and $16 price target for CRLBF stock.
Curaleaf is actually a U.S. MSO which runs in twenty three states. Among those states is actually New Jersey, that might represent probably the largest opportunity among the states which legalized recreational marijuana on Election Day. Not simply will Curaleaf benefit from the brand new Jersey sector, but Zuanic says Curaleaf will likely draw clients from neighboring Pennsylvania and New York. Curaleaf noted astounding 142 % revenue growth and 180 % disgusting profit development year over year in the second quarter and holds a leadership position in key states. Cantor Fitzgerald has an “overweight” rating and $18 price target for CURLF inventory.
Green Thumb Industries (GTBIF)
Green Thumb Industries is actually a U.S. MSO which works in twelve states, like 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 Illinois and Pennsylvania without overextending its balance sheet, it currently has a sizable presence in New Zuanic and Jersey is projecting revenue will develop from $527 million in 2020 to $982 million by 2022. He also anticipates additional legalization of Pennsylvania, New York, Maryland and Connecticut 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 an MSO which works 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 ability to maintain a dominant market share of the high-growth Florida medical marijuana industry. Moreover, Zuanic says Trulieve features a substantial opportunity to grow its companies in other states, including California, Massachusetts and Connecticut. Finally, he’s upbeat Florida voters might 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 other cannabis stocks on this list, GW Pharmaceuticals is a biopharmaceutical business centered 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 end of 2021, including further penetration into adult individuals and more rollout in Europe. Cantor has an “overweight” rating and $165 cost target for GWPH inventory.