The election results are actually bullish for marijuana stocks.
Cannabis stock investors didn’t get the blue wave these were hoping for in the U.S. election, but all 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 potential geographic footprint of cannabis multistate operators, or MSOs. Unfortunately for cannabis investors, Democrats may not gain control of the Senate, possibly limiting considerable federal cannabis reform. To be a result, a few cannabis stocks initially dropped following the election. Allow me to share the best cannabis stocks to purchase following the election, based on Cantor Fitzgerald.
Flower price depreciation has long been an important issue for all Canadian licensed producers, or LPs. Nonetheless, analyst Pablo Zuanic claims Canadian LPs as 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 2 years away, but decriminalization of adult use marijuana and potential federal rescheduling of cannabis could boost Aphria as well as other Canadian LPs, Zuanic says. He claims Aphria has several positive catalysts ahead in the near term, including a rise of exports. Cantor Fitzgerald has an “overweight” rating and $8.95 price target for APHA stock.
Canadian LP OrganiGram has had a brutal year of 2020. Zuanic says OrganiGram’s retail sales trends in the third quarter had been relatively strong compared with various other Canadian LPs. Nevertheless, Hifyre cannabis sales data for October recommend OrganiGram sales were down 25 % month over month compared with a 5 % decline for the overall Canadian retail market. OrganiGram has disappointed investors with the sluggish revenue growth of its and cash burn, but Zuanic is actually hopeful the business may find the way of its to profits and growth in the long term. 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 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 tells you Cresco’s 42 % sequential sales growth in the second quarter was the most effective growth rates among all of Cresco’s large MSO peers. Zuanic says the Illinois industry will be a serious near term growth driver for Cresco, and its Origin House acquisition should supplement the natural growth of its. Cantor Fitzgerald has an “overweight” rating and sixteen dolars price target for CRLBF inventory.
Curaleaf is actually a U.S. MSO which runs in twenty three states. One of those states is New Jersey, which might represent the largest opportunity with the states that legalized recreational marijuana on Election Day. Not simply will Curaleaf benefit from the new Jersey sector, but Zuanic says Curaleaf will probably draw customers from neighboring New York and Pennsylvania. Curaleaf reported impressive 142 % revenue growth and 180 % gross profit development year over year in the second quarter and holds a leadership position in key states. Cantor Fitzgerald has an “overweight” rating and eighteen dolars cost target for CURLF inventory.
Green Thumb Industries (GTBIF)
Green Thumb Industries is a U.S. MSO that works in 12 states, including Florida as well as California. Zuanic says Green Thumb has the ideal risk profile of Cantor’s top rated MSOs. Green Thumb has expanded the footprint of its in Illinois and Pennsylvania without overextending the balance sheet of its, it already has a sizable presence in New Zuanic and Jersey is projecting revenue will grow from $527 million in 2020 to $982 million by 2022. Also, he anticipates further legalization of Pennsylvania, New York, Connecticut as well as Maryland in coming years. Cantor Fitzgerald has an “overweight” rating and $29 cost target for GTBIF stock.
Trulieve Cannabis Corp. (TCNNF)
Trulieve Cannabis is actually an MSO which works largely in Florida. Zuanic recently hosted a call with Trulieve CEO Kim Rivers. After speaking 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 has a substantial alternative to grow the businesses of its in some other states, like California, Massachusetts and Connecticut. Finally, he’s optimistic 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)
In contrast to the various other cannabis stocks on this list, GW Pharmaceuticals is actually a biopharmaceutical company focused on creating cannabis based drug treatments. The company’s lead drug Epidiolex has been approved by the Food and Drug Administration for the treatment of pediatric epilepsy. Cantor analyst Charles Duncan states GW’s third-quarter Epidiolex sales exceeded the expectations of his. He also sees assorted bullish catalysts for GW through the conclusion of 2021, which includes further penetration into more rollout and adult clients in Europe. Cantor has an “overweight” rating and $165 cost target for GWPH inventory.