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 all 5 status marijuana legalization procedures 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 MSOs. Unfortunately for cannabis investors, Democrats might not gain control of the Senate, potentially limiting considerable federal cannabis reform. As a result, some cannabis stocks initially dropped following the election. Allow me to share the best cannabis stocks to invest in following the election, based on Cantor Fitzgerald.
Flower price depreciation has been a big issue for just about all Canadian licensed producers, or LPs. However, analyst Pablo Zuanic says Canadian LPs like Aphria might have “positive collateral benefits” from the U.S. election, assuming Joe Biden takes more than the White House. Federal legalization might still be a minimum of 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 states. He claims Aphria has several positive catalysts ahead in the near term, including a rise in 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 tells you OrganiGram’s retail sales trends in the third quarter were fairly strong in comparison with various other Canadian LPs. Nevertheless, Hifyre cannabis sales information for October recommend OrganiGram sales had been down 25 % month over month in contrast to a five % decline for the complete Canadian retail store. OrganiGram has disappointed investors with its sluggish revenue growth and money burn up, but Zuanic is hopeful the small business will see its way to growth and profits in the long run. Cantor Fitzgerald has an “overweight” rating and $4.07 cost target for OGI inventory.
While Canadian cannabis stocks are actually struggling, U.S. multistate operators as Cresco Labs are actually thriving. In the next quarter, Cresco beat consensus analyst sales estimates by thirty % and exceeded the earnings of theirs before interest, taxes, depreciation and amortization expectations by nearly 200 %. Zuanic says Cresco’s forty two % sequential sales expansion in the second quarter was the most effective growth rate with almost all of Cresco’s large MSO peers. Zuanic says the Illinois market will be a major near term growth driver for Cresco, and the Origin House acquisition of its should supplement the natural growth of its. Cantor Fitzgerald has an “overweight” rating and sixteen dolars price target for CRLBF stock.
Curaleaf is a U.S. MSO which operates in 23 states. One of those states is actually New Jersey, which may represent probably the largest opportunity with the states that legalized recreational marijuana on Election Day. Not merely will Curaleaf benefit from the brand new Jersey sector, but Zuanic says Curaleaf will likely draw customers from neighboring New York and Pennsylvania. Curaleaf noted astounding 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 inventory.
Green Thumb Industries (GTBIF)
Green Thumb Industries is a U.S. MSO that operates in 12 states, like California and Florida. Zuanic reveals 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 currently has a sizable presence in New Jersey and Zuanic is actually projecting revenue will develop 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 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 talking with Rivers, Zuanic says he is confident in Trulieve’s potential to maintain a dominant market share of the high-growth Florida medical marijuana market. Additionally, Zuanic says Trulieve features a substantial chance to produce the companies of its in some other states, including California, Massachusetts and Connecticut. Lastly, he is upbeat Florida voters can legalize recreational marijuana in the 2022 midterm election. Cantor Fitzgerald has an “overweight” rating and sixty dolars cost target for TCNNF stock.
GW Pharmaceuticals (GWPH)
Unlike the other cannabis stocks on this list, GW Pharmaceuticals is a biopharmaceutical business centered on developing 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 says GW’s third-quarter Epidiolex sales exceeded his expectations. Also, he sees assorted bullish catalysts for GW with the tail end of 2021, which includes further penetration into adult people and additional rollout in Europe. Cantor has an “overweight” rating and $165 cost target for GWPH stock.