The election results are actually 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. Fun 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 perhaps MSOs. Unfortunately for cannabis investors, Democrats may not gain control of the Senate, potentially restricting significant federal cannabis reform. To be a result, some cannabis stocks initially dropped following the election. Here are the very best cannabis stocks to buy following the election, based on Cantor Fitzgerald.
Flower price depreciation has been a significant problem for just about all Canadian licensed producers, or perhaps LPs. Nonetheless, analyst Pablo Zuanic claims Canadian LPs as Aphria could have “positive collateral benefits” from the U.S. election, assuming Joe Biden takes over the White House. Federal legalization may well still be a minimum of two years away, but decriminalization of adult use marijuana and potential federal rescheduling of cannabis may raise Aphria as well as other Canadian LPs, Zuanic states. He says Aphria has multiple positive catalysts in front in the near term, including an increase 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 were relatively strong compared with other Canadian LPs. Nonetheless, Hifyre cannabis sales data for October recommend OrganiGram sales were down twenty five % month over month in contrast to a five % decline for the overall Canadian retail market. OrganiGram has disappointed investors with the sluggish revenue growth of its and money burn, but Zuanic is hopeful the business may find its way to growth and profitability in the long run. Cantor Fitzgerald has an “overweight” rating and $4.07 cost target for OGI stock.
While Canadian cannabis stocks are struggling, U.S. multistate operators as Cresco Labs are thriving. In the next quarter, Cresco beat consensus analyst sales estimates by 30 % and exceeded their earnings before interest, taxes, depreciation and amortization expectations by almost 200 %. Zuanic tells you Cresco’s 42 % sequential sales growth in the next quarter was the most effective growth rates among many of Cresco’s big MSO peers. Zuanic alleges the Illinois market will be a major near-term growth driver for Cresco, and the Origin House acquisition of its ought to supplement the natural growth of its. Cantor Fitzgerald has an “overweight” rating and $16 cost target for CRLBF inventory.
Curaleaf is a U.S. MSO which works in twenty three states. One of those states is actually New Jersey, that might 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 may draw customers from neighboring Pennsylvania and New York. Curaleaf noted amazing 142 % revenue growth and 180 % disgusting profit development year over year in the second quarter and also holds a leadership position in key states. Cantor Fitzgerald has an “overweight” rating and $18 price target for CURLF inventory.
Green Thumb Industries (GTBIF)
Green Thumb Industries is actually a U.S. MSO which operates in 12 states, including Florida and California. Zuanic states Green Thumb has the best 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 mature from $527 million in 2020 to $982 million by 2022. He also anticipates additional legalization of Pennsylvania, New York, Maryland as well as Connecticut in coming years. Cantor Fitzgerald has an “overweight” rating and twenty nine dolars cost target for GTBIF stock.
Trulieve Cannabis Corp. (TCNNF)
Trulieve Cannabis is actually an MSO that operates 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 ability to maintain a dominant market share of the high growth Florida medical marijuana market. Furthermore, Zuanic affirms Trulieve includes a substantial chance to produce its businesses in some other states, including California, Massachusetts and Connecticut. Last but not least, he’s optimistic Florida voters can legalize recreational marijuana in the 2022 midterm election. Cantor Fitzgerald has an “overweight” rating and $60 price target for TCNNF stock.
GW Pharmaceuticals (GWPH)
As opposed to the other cannabis stocks on this list, GW Pharmaceuticals is actually a biopharmaceutical business 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 treatment of pediatric epilepsy. Cantor analyst Charles Duncan says GW’s third-quarter Epidiolex sales exceeded the expectations of his. He also sees assorted bullish catalysts for GW through the end of 2021, which includes further penetration into adult clientele and additional rollout in Europe. Cantor has an “overweight” rating and $165 cost target for GWPH stock.
