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 5 status marijuana legalization methods 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 might not gain control of the Senate, potentially limiting significant federal cannabis reform. To be a result, a few 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 priced depreciation continues to be an important problem for almost all Canadian licensed producers, or maybe LPs. Nevertheless, analyst Pablo Zuanic claims Canadian LPs like Aphria may have “positive collateral benefits” from the U.S. election, assuming Joe Biden takes more than the White House. Federal legalization may still be no less than two years away, but decriminalization of adult-use marijuana and potential federal rescheduling of cannabis can increase Aphria along with other Canadian LPs, Zuanic states. He states Aphria has a number of 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 stock.
Canadian LP OrganiGram has had a brutal year of 2020. Zuanic tells you OrganiGram’s retail sales trends in the third quarter were relatively strong compared with various other Canadian LPs. But, Hifyre cannabis sales data for October recommend OrganiGram sales had been down 25 % month over month in contrast to a five % decline for the overall Canadian retail market. OrganiGram has disappointed investors with its sluggish revenue growth and cash burn, but Zuanic is actually optimistic the small business will see its way to growth and earnings in the long term. Cantor Fitzgerald has an “overweight” rating and $4.07 cost target for OGI stock.
While Canadian cannabis stocks are struggling, U.S. multistate operators like Cresco Labs are actually thriving. In the next quarter, Cresco beat consensus analyst sales estimates by thirty % and exceeded the earnings of theirs before interest, taxes, depreciation and amortization expectations by about 200 %. Zuanic says Cresco’s 42 % sequential sales development in the next quarter was the best growth rates 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 its organic growth. Cantor Fitzgerald has an “overweight” rating and sixteen dolars cost target for CRLBF stock.
Curaleaf is a U.S. MSO that operates in 23 states. Among those states is actually New Jersey, that might represent the largest opportunity with the states which legalized recreational marijuana on Election Day. Not only will Curaleaf gain from the brand new Jersey sector, but Zuanic says Curaleaf will likely draw clients from neighboring New York and Pennsylvania. Curaleaf reported amazing 142 % revenue growth and 180 % disgusting profit development 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 a U.S. MSO which works in 12 states, including California and Florida. Zuanic says 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 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 in Pennsylvania, New York, Connecticut as well as Maryland in coming years. Cantor Fitzgerald has an “overweight” rating and twenty nine dolars cost target for GTBIF inventory.
Trulieve Cannabis Corp. (TCNNF)
Trulieve Cannabis is actually an MSO which works largely in Florida. Zuanic recently hosted a call with Trulieve CEO Kim Rivers. After talking with Rivers, Zuanic says he is comfortable in Trulieve’s capacity to maintain a dominant market share of the high-growth Florida medical marijuana market. In addition, Zuanic says Trulieve has a significant alternative to produce the companies of its in some other states, like California, Massachusetts and Connecticut. Finally, he’s upbeat 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)
In contrast 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 treatment of pediatric epilepsy. Cantor analyst Charles Duncan says GW’s third quarter Epidiolex sales exceeded his expectations. Also, he sees several bullish catalysts for GW through the conclusion of 2021, which includes further penetration into adult patients and additional rollout in Europe. Cantor has an “overweight” rating and $165 cost target for GWPH inventory.