The election results are actually bullish for marijuana stocks.
Cannabis stock investors did not get the blue wave they were hoping for in the U.S. election, but just five state marijuana legalization methods on the ballot have passed. Fun 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, possibly limiting considerable federal cannabis reform. As a result, some cannabis stocks initially dropped following the election. Allow me to share the best cannabis stocks to buy following the election, according to Cantor Fitzgerald.
Flower priced depreciation continues to be a big issue for just about all Canadian licensed producers, or maybe LPs. However, analyst Pablo Zuanic reveals Canadian LPs as Aphria could have “positive collateral benefits” from the U.S. election, assuming Joe Biden takes more than the White House. Federal legalization might still be a minimum of 2 years away, but decriminalization of adult-use marijuana and potential federal rescheduling of cannabis may boost Aphria and other Canadian LPs, Zuanic states. He states Aphria has a number of positive catalysts ahead in the near term, including an increase in exports. Cantor Fitzgerald has an “overweight” rating and $8.95 cost 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 other Canadian LPs. Nonetheless, Hifyre cannabis sales data for October recommend OrganiGram sales were 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 as well as cash burn, but Zuanic is actually hopeful the business may find its way to growth and profitability in the long haul. Cantor Fitzgerald has an “overweight” rating and $4.07 cost target for OGI stock.
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 interest, taxes, depreciation and amortization expectations by nearly 200 %. Zuanic affirms Cresco’s 42 % sequential sales progress in the second quarter was the most effective growth rate among all of Cresco’s big MSO peers. Zuanic alleges the Illinois industry is going to be a leading near-term growth driver for Cresco, and its Origin House acquisition should supplement the natural growth of its. Cantor Fitzgerald has an “overweight” rating and $16 price target for CRLBF inventory.
Curaleaf is a U.S. MSO which operates in 23 states. One of those states is actually New Jersey, which might represent probably 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 may draw customers from neighboring Pennsylvania and New York. Curaleaf noted impressive 142 % revenue growth as well as 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 stock.
Green Thumb Industries (GTBIF)
Green Thumb Industries is actually a U.S. MSO which runs in 12 states, including California and Florida. Zuanic says Green Thumb has the ideal risk profile of Cantor’s top-rated MSOs. Green Thumb has expanded the footprint of its in Pennsylvania and Illinois without overextending the balance sheet of its, it already has a sizable presence in New Jersey and Zuanic is actually projecting revenue will grow from $527 million in 2020 to $982 million by 2022. Also, he anticipates additional legalization of Pennsylvania, New York, Maryland as well as 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 an MSO that works largely in Florida. Zuanic recently hosted a call with Trulieve CEO Kim Rivers. After talking with Rivers, Zuanic says he’s comfortable in Trulieve’s potential to maintain a dominant market share of the high growth Florida medical marijuana industry. Moreover, Zuanic says Trulieve has a significant opportunity to produce the companies of its in some other states, including California, Massachusetts and Connecticut. Lastly, he is optimistic Florida voters could 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)
Unlike the other cannabis stocks on this list, GW Pharmaceuticals is a biopharmaceutical company centered 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 therapy of pediatric epilepsy. Cantor analyst Charles Duncan says GW’s third quarter Epidiolex sales exceeded the expectations of his. Also, he sees several bullish catalysts for GW through the tail end of 2021, including further penetration into additional rollout and adult people in Europe. Cantor has an “overweight” rating and $165 cost target for GWPH stock.