The election results are bullish for marijuana stocks.
Cannabis stock investors didn’t get the blue wave these were hoping for in the U.S. election, but all five 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 potential geographic footprint of cannabis multistate operators, or maybe MSOs. Unfortunately for cannabis investors, Democrats might not gain control of the Senate, possibly restricting considerable federal cannabis reform. Being a result, a few cannabis stocks initially dropped following the election. Here are the very best cannabis stocks to invest in following the election, according to Cantor Fitzgerald.
Flower priced depreciation continues to be a major concern for all Canadian licensed producers, or maybe LPs. But, analyst Pablo Zuanic reveals Canadian LPs as Aphria may have “positive collateral benefits” from the U.S. election, assuming Joe Biden takes over the White House. Federal legalization might still be at least two years away, but decriminalization of adult-use marijuana and potential federal rescheduling of cannabis could boost Aphria as well as other Canadian LPs, Zuanic states. He claims Aphria has several positive catalysts ahead in the near term, including a rise of 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 affirms 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 suggest OrganiGram sales had been down twenty five % month over month in contrast to a 5 % decline for the entire Canadian retail store. OrganiGram has disappointed investors with its sluggish revenue growth as well as cash burn, but Zuanic is actually hopeful the business will find the way of its to growth and profitability in the long haul. Cantor Fitzgerald has an “overweight” rating and $4.07 cost target for OGI inventory.
While Canadian cannabis stocks are struggling, U.S. multistate operators as Cresco Labs are thriving. In the second quarter, Cresco beat consensus analyst sales estimates by 30 % and exceeded the earnings of theirs before amortization expectations, depreciation, taxes, and interest by almost 200 %. Zuanic tells you Cresco’s 42 % sequential sales development in the next quarter was the best growth rates among many of Cresco’s large 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 organic growth of its. Cantor Fitzgerald has an “overweight” rating and sixteen dolars price target for CRLBF stock.
Curaleaf is actually a U.S. MSO that operates in twenty three states. Among those states is actually New Jersey, which may represent the largest opportunity among the states that legalized recreational marijuana on Election Day. Not only will Curaleaf benefit from the brand new Jersey sector, but Zuanic says Curaleaf will likely draw customers from neighboring Pennsylvania and New York. Curaleaf noted amazing 142 % revenue growth as well as 180 % disgusting profit growth year over year in the next 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 operates in twelve states, like Florida as well as California. Zuanic states Green Thumb has the ideal 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 Zuanic and Jersey is projecting revenue will grow from $527 million in 2020 to $982 million by 2022. Additionally, he anticipates additional legalization in Pennsylvania, New York, Maryland and Connecticut in coming years. Cantor Fitzgerald has an “overweight” rating and $29 cost target for GTBIF inventory.
Trulieve Cannabis Corp. (TCNNF)
Trulieve Cannabis is an MSO that runs largely in Florida. Zuanic recently hosted a call with Trulieve CEO Kim Rivers. After speaking with Rivers, Zuanic says he’s confident in Trulieve’s ability to maintain a dominant market share of the high growth Florida medical marijuana industry. Furthermore, Zuanic affirms Trulieve features a substantial alternative to produce its businesses in some other states, like Connecticut, Massachusetts, and California. Finally, he’s upbeat Florida voters might legalize recreational marijuana in the 2022 midterm election. Cantor Fitzgerald has an “overweight” rating and sixty dolars cost target for TCNNF inventory.
GW Pharmaceuticals (GWPH)
Unlike the various other cannabis stocks on this list, GW Pharmaceuticals is actually a biopharmaceutical company centered on creating 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 assorted bullish catalysts for GW with the end of 2021, including further penetration into adult clientele and more rollout in Europe. Cantor has an “overweight” rating and $165 price target for GWPH inventory.