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 five state 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 potential geographic footprint of cannabis multistate operators, or MSOs. Unfortunately for cannabis investors, Democrats might not gain control of the Senate, potentially limiting significant federal cannabis reform. Being a result, some cannabis stocks initially dropped following the election. Allow me to share the very best cannabis stocks to invest in following the election, as reported by Cantor Fitzgerald.
Flower price depreciation has been a major problem 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 over the White House. Federal legalization may well still be at least 2 years away, but decriminalization of adult-use marijuana and potential federal rescheduling of cannabis can boost Aphria along with other Canadian LPs, Zuanic says. He says Aphria has a number of positive catalysts ahead 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 of 2020. Zuanic tells you OrganiGram’s retail sales trends in the third quarter had been fairly strong compared with other Canadian LPs. Nonetheless, Hifyre cannabis sales information 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 cash burn, but Zuanic is optimistic the small business will find the way of its to earnings and growth in the long term. Cantor Fitzgerald has an “overweight” rating and $4.07 cost target for OGI inventory.
While Canadian cannabis stocks are 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 affirms Cresco’s 42 % sequential sales expansion in the next quarter was the very best growth rate with almost all of Cresco’s big MSO peers. Zuanic says the Illinois market will be a serious 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 price target for CRLBF stock.
Curaleaf is a U.S. MSO which operates in twenty three states. One of those states is actually New Jersey, which may represent the largest opportunity among the states that legalized recreational marijuana on Election Day. Not simply will Curaleaf benefit from the new Jersey market, but Zuanic says Curaleaf may draw customers from neighboring Pennsylvania and New York. Curaleaf reported amazing 142 % revenue growth and 180 % disgusting 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 price target for CURLF inventory.
Green Thumb Industries (GTBIF)
Green Thumb Industries is actually a U.S. MSO which works in twelve states, like California and Florida. Zuanic reveals 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 currently has a sizable presence in New Zuanic and Jersey is projecting revenue will grow from $527 million in 2020 to $982 million by 2022. He also anticipates additional legalization of Pennsylvania, New York, Connecticut and 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 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 capacity to maintain a dominant market share of the high growth Florida medical marijuana market. Furthermore, Zuanic affirms Trulieve includes a substantial chance to grow the companies of its in some other states, including Connecticut, Massachusetts, and California. Lastly, he’s optimistic Florida voters might 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)
In contrast to the various other cannabis stocks on this list, GW Pharmaceuticals is actually a biopharmaceutical company centered on creating cannabis-based drug therapies. 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 states GW’s third-quarter Epidiolex sales exceeded the expectations of his. He also sees assorted bullish catalysts for GW with the end of 2021, including further penetration into additional rollout and adult people in Europe. Cantor has an “overweight” rating and $165 price target for GWPH inventory.