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 just 5 status marijuana legalization methods 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 limiting considerable federal cannabis reform. To be a result, some cannabis stocks initially dropped following the election. Here are the best cannabis stocks to buy following the election, based on Cantor Fitzgerald.
Flower priced depreciation has long been a major concern for just about all Canadian licensed producers, or maybe LPs. Nevertheless, analyst Pablo Zuanic states Canadian LPs as 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 as well as other Canadian LPs, Zuanic states. He states Aphria has several positive catalysts forward in the near term, including a rise 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 affirms OrganiGram’s retail sales trends in the third quarter were fairly strong in contrast to various other Canadian LPs. Nevertheless, Hifyre cannabis sales data for October recommend OrganiGram sales had been down 25 % month over month compared with a 5 % decline for the entire Canadian retail store. OrganiGram has disappointed investors with the sluggish revenue growth of its and cash burn, but Zuanic is actually optimistic the company will find its way to profitability and growth in the long run. Cantor Fitzgerald has an “overweight” rating and $4.07 cost target for OGI stock.
While Canadian cannabis stocks are actually 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 interest, taxes, depreciation and amortization expectations by about 200 %. Zuanic says Cresco’s forty two % sequential sales advancement in the next quarter was the very best growth rate among almost all of Cresco’s large MSO peers. Zuanic alleges the Illinois market is going to be a serious near-term growth driver for Cresco, and the Origin House acquisition of its ought to supplement its organic growth. Cantor Fitzgerald has an “overweight” rating and $16 price target for CRLBF stock.
Curaleaf is a U.S. MSO that operates in twenty three states. Among those states is actually New Jersey, which might represent the largest opportunity among the states which legalized recreational marijuana on Election Day. Not merely will Curaleaf gain from the new Jersey sector, but Zuanic says Curaleaf will likely draw customers from neighboring New York and Pennsylvania. Curaleaf noted amazing 142 % revenue growth and 180 % disgusting profit growth year over year in the second quarter and holds a leadership position in key states. Cantor Fitzgerald has an “overweight” rating and $18 price target for CURLF inventory.
Green Thumb Industries (GTBIF)
Green Thumb Industries is a U.S. MSO that operates in twelve states, like California as well as Florida. Zuanic reveals 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 projecting revenue will mature 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 twenty nine dolars 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 speaking with Rivers, Zuanic says he is confident in Trulieve’s capacity to keep a dominant market share of the high-growth Florida medical marijuana market. In addition, Zuanic says Trulieve has a substantial alternative to produce its companies in other states, including Connecticut, Massachusetts, and California. Last but not least, he is optimistic Florida voters can 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)
In contrast to the various other cannabis stocks on this list, GW Pharmaceuticals is a biopharmaceutical company focused on developing cannabis based drug treatments. 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. He also sees assorted bullish catalysts for GW through the tail end of 2021, which includes further penetration into adult clientele and additional rollout in Europe. Cantor has an “overweight” rating and $165 price target for GWPH stock.