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 just five status marijuana legalization procedures on the ballot have passed. Recreational and/or medical marijuana was legalized in Arizona, Mississippi, Montana, South Dakota and new Jersey, increasing the possible 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 buy following the election, as reported by Cantor Fitzgerald.
Flower price depreciation continues to be a major problem for all Canadian licensed producers, or maybe LPs. But, analyst Pablo Zuanic says Canadian LPs like Aphria might have “positive collateral benefits” from the U.S. election, assuming Joe Biden takes over the White House. Federal legalization may still be a minimum of 2 years away, but decriminalization of adult-use marijuana and potential federal rescheduling of cannabis may raise Aphria as well as other Canadian LPs, Zuanic says. He says Aphria has a number of positive catalysts ahead in the near term, including a rise of exports. Cantor Fitzgerald has an “overweight” rating and $8.95 cost target for APHA stock.
Canadian LP OrganiGram has had a brutal year of 2020. Zuanic affirms OrganiGram’s retail sales trends in the third quarter had been relatively strong in comparison with other Canadian LPs. Nonetheless, Hifyre cannabis sales data for October recommend OrganiGram sales had been down twenty five % month over month compared with a 5 % decline for the complete Canadian retail store. OrganiGram has disappointed investors with the sluggish revenue growth of its and money burn up, but Zuanic is actually hopeful the small business will see its way to growth and earnings in the long haul. 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 like 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 forty two % sequential sales development in the second 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 sixteen dolars 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, which may represent the largest opportunity with the states which legalized recreational marijuana on Election Day. Not simply will Curaleaf benefit from the brand new Jersey market, but Zuanic says Curaleaf may draw clients from neighboring Pennsylvania and New York. Curaleaf reported amazing 142 % revenue growth as well as 180 % disgusting profit growth year over year in the next quarter and also 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 works in 12 states, like Florida and California. Zuanic states 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 already has a sizable presence in New Jersey and Zuanic is projecting revenue will develop from $527 million in 2020 to $982 million by 2022. He also anticipates further legalization of Pennsylvania, New York, Maryland and Connecticut in coming years. Cantor Fitzgerald has an “overweight” rating and twenty nine dolars price target for GTBIF inventory.
Trulieve Cannabis Corp. (TCNNF)
Trulieve Cannabis is an MSO that runs largely in Florida. Zuanic recently hosted a call with Trulieve CEO Kim Rivers. After speaking with Rivers, Zuanic says he’s comfortable in Trulieve’s capacity to maintain a dominant market share of the high-growth Florida medical marijuana industry. Furthermore, Zuanic affirms Trulieve includes a significant opportunity to grow its companies in other states, including Connecticut, Massachusetts, and California. 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 actually a biopharmaceutical company centered on developing cannabis based drug therapies. 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 the expectations of his. Also, he sees several bullish catalysts for GW with the tail end of 2021, which includes further penetration into additional rollout and adult clientele in Europe. Cantor has an “overweight” rating and $165 cost target for GWPH stock.