The election results are bullish for marijuana stocks.
Cannabis stock investors did not 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. 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 might not gain control of the Senate, possibly limiting considerable federal cannabis reform. Being 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 priced depreciation has been a significant concern for all Canadian licensed producers, or maybe LPs. However, analyst Pablo Zuanic reveals 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 may well still be a minimum of 2 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 a surge in exports. Cantor Fitzgerald has an “overweight” rating and $8.95 price target for APHA inventory.
Canadian LP OrganiGram has had a brutal year in 2020. Zuanic tells you 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 twenty five % month over month in contrast to a five % decline for the entire Canadian retail store. OrganiGram has disappointed investors with the sluggish revenue growth of its and money burn, but Zuanic is actually optimistic the small business will find the way of its to profitability and growth in the long haul. 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 as 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 affirms Cresco’s 42 % sequential sales growth in the next quarter was the top growth rates with all of Cresco’s large MSO peers. Zuanic states the Illinois market will be a leading near-term growth driver for Cresco, and the Origin House acquisition of its should supplement its organic growth. Cantor Fitzgerald has an “overweight” rating and sixteen dolars price target for CRLBF inventory.
Curaleaf is a U.S. MSO that works in twenty three states. One of those states is actually New Jersey, that might represent probably the largest opportunity with the states which legalized recreational marijuana on Election Day. Not simply will Curaleaf gain from the new Jersey market, but Zuanic says Curaleaf will likely draw customers from neighboring Pennsylvania and New York. Curaleaf reported amazing 142 % revenue growth as well as 180 % disgusting earnings growth year over year in the next 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 actually a U.S. MSO which runs in twelve 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 the footprint of its in Pennsylvania and Illinois without overextending the balance sheet of its, it already has a sizable presence in New Zuanic and Jersey is actually projecting revenue will develop from $527 million in 2020 to $982 million by 2022. Also, he anticipates additional legalization in Pennsylvania, New York, Connecticut as well as Maryland 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 speaking 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. In addition, Zuanic affirms Trulieve includes a significant chance to grow its companies in some other states, like Connecticut, Massachusetts, and California. Last but not least, he’s upbeat Florida voters might 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 other cannabis stocks on this list, GW Pharmaceuticals is actually 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 says GW’s third quarter Epidiolex sales exceeded the expectations of his. Also, he sees assorted bullish catalysts for GW through the end of 2021, which includes further penetration into more rollout and adult patients in Europe. Cantor has an “overweight” rating and $165 cost target for GWPH stock.