The election results are actually bullish for marijuana stocks.
Cannabis stock investors didn’t get the blue wave they were hoping for in the U.S. election, but all five state marijuana legalization measures 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 perhaps MSOs. Unfortunately for cannabis investors, Democrats may not gain control of the Senate, potentially restricting considerable federal cannabis reform. As a result, a few cannabis stocks initially dropped following the election. Allow me to share the very best cannabis stocks to purchase following the election, based on Cantor Fitzgerald.
Flower priced depreciation continues to be a major problem for just about all Canadian licensed producers, or LPs. But, analyst Pablo Zuanic states 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 well still be no less than two years away, but decriminalization of adult use marijuana and potential federal rescheduling of cannabis may raise Aphria and other Canadian LPs, Zuanic states. He claims Aphria has multiple positive catalysts in front in the near term, including a surge of exports. Cantor Fitzgerald has an “overweight” rating and $8.95 cost target for APHA inventory.
Canadian LP OrganiGram has had a brutal year of 2020. Zuanic says OrganiGram’s retail sales trends in the third quarter had been fairly strong in contrast to other Canadian LPs. However, Hifyre cannabis sales information for October suggest OrganiGram sales were down twenty five % month over month compared with a 5 % decline for the entire Canadian retail store. OrganiGram has disappointed investors with its sluggish revenue growth and cash burn, but Zuanic is actually hopeful the company will see the way of its to profitability and growth in the long run. Cantor Fitzgerald has an “overweight” rating and $4.07 price target for OGI stock.
While Canadian cannabis stocks are struggling, U.S. multistate operators like Cresco Labs are actually thriving. In the second quarter, Cresco beat consensus analyst sales estimates by 30 % and exceeded their earnings before amortization expectations, depreciation, taxes, and interest by nearly 200 %. Zuanic affirms Cresco’s forty two % sequential sales development in the next quarter was the top growth rates among many of Cresco’s big MSO peers. Zuanic states the Illinois industry will be a serious near-term growth driver for Cresco, and the Origin House acquisition of its should supplement the organic growth of its. Cantor Fitzgerald has an “overweight” rating and sixteen dolars cost target for CRLBF stock.
Curaleaf is a U.S. MSO that works in 23 states. Among those states is actually New Jersey, which might represent the largest opportunity with the states which legalized recreational marijuana on Election Day. Not only will Curaleaf gain from the new Jersey sector, but Zuanic says Curaleaf will likely draw customers from neighboring Pennsylvania and New York. Curaleaf noted impressive 142 % revenue growth as well as 180 % gross 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 cost target for CURLF stock.
Green Thumb Industries (GTBIF)
Green Thumb Industries is actually a U.S. MSO which runs in twelve states, including Florida and California. Zuanic claims Green Thumb has the very best risk profile of Cantor’s top rated MSOs. Green Thumb has expanded its footprint in Pennsylvania and Illinois without overextending the balance sheet of its, it already has a sizable presence in New Zuanic and Jersey is actually projecting revenue will mature from $527 million in 2020 to $982 million by 2022. Also, he anticipates additional 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 stock.
Trulieve Cannabis Corp. (TCNNF)
Trulieve Cannabis is actually an MSO that operates primarily in Florida. Zuanic recently hosted a call with Trulieve CEO Kim Rivers. After talking with Rivers, Zuanic says he’s comfortable in Trulieve’s ability to keep a dominant market share of the high growth Florida medical marijuana market. Moreover, Zuanic affirms Trulieve has a significant opportunity to produce its businesses in some other states, including California, Massachusetts and Connecticut. Finally, he’s 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)
As opposed to the various other cannabis stocks on this list, GW Pharmaceuticals is a biopharmaceutical business centered on developing 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 states GW’s third-quarter Epidiolex sales exceeded the expectations of his. Also, he sees assorted bullish catalysts for GW with the end of 2021, which includes further penetration into adult clientele and more rollout in Europe. Cantor has an “overweight” rating and $165 price target for GWPH inventory.