The election results are actually bullish for marijuana stocks.
Cannabis stock investors didn’t get the blue wave these were hoping for in the U.S. election, but just five status marijuana legalization measures 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 perhaps MSOs. Unfortunately for cannabis investors, Democrats might not gain control of the Senate, potentially restricting considerable federal cannabis reform. Being 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 price depreciation continues to be a big concern for all Canadian licensed producers, or perhaps LPs. However, analyst Pablo Zuanic says Canadian LPs like 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 at least two years away, but decriminalization of adult use marijuana and potential federal rescheduling of cannabis can increase Aphria and other Canadian LPs, Zuanic says. He says Aphria has several positive catalysts ahead in the near term, including an increase in exports. Cantor Fitzgerald has an “overweight” rating and $8.95 cost target for APHA stock.
Canadian LP OrganiGram has had a brutal year in 2020. Zuanic says OrganiGram’s retail sales trends in the third quarter had been relatively strong in comparison with various other Canadian LPs. However, Hifyre cannabis sales data for October suggest OrganiGram sales were down twenty five % month over month compared with 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 actually hopeful the small business will see the way of its to profitability 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 actually struggling, U.S. multistate operators like Cresco Labs are thriving. In the next quarter, Cresco beat consensus analyst sales estimates by thirty % and exceeded the earnings of theirs before amortization expectations, depreciation, taxes, and interest by almost 200 %. Zuanic tells you Cresco’s forty two % sequential sales growth in the next quarter was the best growth rate among almost all of Cresco’s large MSO peers. Zuanic states the Illinois market is going to be a major 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 $16 cost target for CRLBF stock.
Curaleaf is a U.S. MSO that operates in 23 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 only will Curaleaf benefit from the brand new Jersey market, but Zuanic says Curaleaf will likely draw customers from neighboring New York and Pennsylvania. Curaleaf noted amazing 142 % revenue growth as well as 180 % gross earnings growth year over year in the next quarter and also 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 operates in twelve states, including Florida and California. Zuanic claims Green Thumb has the best risk profile of Cantor’s top-rated MSOs. Green Thumb has expanded the footprint of its in Illinois and Pennsylvania without overextending the balance sheet of its, it already 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. Also, he 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 operates primarily in Florida. Zuanic recently hosted a call with Trulieve CEO Kim Rivers. After speaking with Rivers, Zuanic says he is confident in Trulieve’s capacity to maintain a dominant market share of the high-growth Florida medical marijuana industry. Moreover, Zuanic affirms Trulieve has a tremendous opportunity to grow the businesses of its in some other states, including California, Massachusetts and Connecticut. Finally, he is optimistic Florida voters could legalize recreational marijuana in the 2022 midterm election. Cantor Fitzgerald has an “overweight” rating and $60 price target for TCNNF inventory.
GW Pharmaceuticals (GWPH)
As opposed to the various 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 therapy 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 with the conclusion of 2021, which includes further penetration into adult customers and more rollout in Europe. Cantor has an “overweight” rating and $165 price target for GWPH stock.