The election results are actually bullish for marijuana stocks.
Cannabis stock investors did not 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. 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 maybe MSOs. Unfortunately for cannabis investors, Democrats might not gain control of the Senate, potentially limiting considerable federal cannabis reform. As a result, a few cannabis stocks initially dropped following the election. Allow me to share the best cannabis stocks to purchase following the election, according to Cantor Fitzgerald.
Flower priced depreciation continues to be a major problem for almost all Canadian licensed producers, or LPs. However, analyst Pablo Zuanic reveals Canadian LPs like Aphria may have “positive collateral benefits” from the U.S. election, assuming Joe Biden takes over the White House. Federal legalization may still be no less than 2 years away, but decriminalization of adult-use marijuana and potential federal rescheduling of cannabis could boost Aphria and other Canadian LPs, Zuanic says. He says Aphria has several positive catalysts ahead in the near term, including an increase of 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 says OrganiGram’s retail sales trends in the third quarter had been fairly strong in comparison with various other Canadian LPs. Nevertheless, Hifyre cannabis sales data for October suggest OrganiGram sales were down twenty five % month over month in contrast to a 5 % decline for the overall Canadian retail market. OrganiGram has disappointed investors with the sluggish revenue growth of its as well as money burn, but Zuanic is actually optimistic the business will see its way to profits and growth in the long haul. Cantor Fitzgerald has an “overweight” rating and $4.07 price target for OGI stock.
While Canadian cannabis stocks are 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 their earnings before interest, taxes, depreciation and amortization expectations by nearly 200 %. Zuanic tells you Cresco’s forty two % sequential sales development in the second quarter was the very best growth rates among almost all of Cresco’s big MSO peers. Zuanic states the Illinois market is going to be a serious near term growth driver for Cresco, and its Origin House acquisition ought to 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. Among those states is actually New Jersey, which may represent the largest opportunity among the states which legalized recreational marijuana on Election Day. Not merely will Curaleaf gain from the new Jersey sector, but Zuanic says Curaleaf will probably draw clients from neighboring New York and Pennsylvania. Curaleaf noted amazing 142 % revenue growth as well as 180 % disgusting earnings growth year over year in the second quarter and holds a leadership position in key states. Cantor Fitzgerald has an “overweight” rating and $18 cost target for CURLF stock.
Green Thumb Industries (GTBIF)
Green Thumb Industries is a U.S. MSO that works in 12 states, like California as well as Florida. Zuanic states Green Thumb has the very best risk profile of Cantor’s top-rated MSOs. Green Thumb has expanded its footprint in Pennsylvania and Illinois without overextending its balance sheet, 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. Additionally, he anticipates additional legalization of Pennsylvania, New York, Maryland as well as Connecticut in coming years. Cantor Fitzgerald has an “overweight” rating and $29 price 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’s confident in Trulieve’s potential to maintain a dominant market share of the high growth Florida medical marijuana industry. Furthermore, Zuanic affirms Trulieve has a tremendous opportunity to grow its companies in some other states, including Connecticut, Massachusetts, and California. Last but not least, he is upbeat Florida voters might legalize recreational marijuana in the 2022 midterm election. Cantor Fitzgerald has an “overweight” rating and sixty dolars cost target for TCNNF inventory.
GW Pharmaceuticals (GWPH)
As opposed to the other cannabis stocks on this list, GW Pharmaceuticals is a biopharmaceutical company focused on creating 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 assorted bullish catalysts for GW with the end of 2021, which includes further penetration into additional rollout and adult patients in Europe. Cantor has an “overweight” rating and $165 cost target for GWPH stock.