The election results are bullish for marijuana stocks.
Cannabis stock investors did not 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, 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 restricting significant federal cannabis reform. Being a result, some cannabis stocks initially dropped following the election. Allow me to share the very best cannabis stocks to invest in following the election, based on Cantor Fitzgerald.
Flower priced depreciation continues to be an important problem for almost all Canadian licensed producers, or maybe LPs. But, analyst Pablo Zuanic states Canadian LPs as Aphria could have “positive collateral benefits” from the U.S. election, assuming Joe Biden takes over the White House. Federal legalization may still be no less than 2 years away, but decriminalization of adult-use marijuana and potential federal rescheduling of cannabis can raise Aphria and other Canadian LPs, Zuanic states. He states Aphria has several positive catalysts in front in the near term, including a rise in 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 affirms OrganiGram’s retail sales trends in the third quarter were fairly strong in contrast to various other Canadian LPs. However, Hifyre cannabis sales data for October suggest OrganiGram sales had been down 25 % month over month compared with a five % decline for the entire Canadian retail store. OrganiGram has disappointed investors with the sluggish revenue growth of its and cash burn up, but Zuanic is hopeful the company will find its way to profitability and growth in the long haul. Cantor Fitzgerald has an “overweight” rating and $4.07 price target for OGI inventory.
While Canadian cannabis stocks are actually 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 nearly 200 %. Zuanic affirms Cresco’s 42 % sequential sales progress in the next quarter was the best growth rate with almost all of Cresco’s large MSO peers. Zuanic states the Illinois industry will be a major near term growth driver for Cresco, and the Origin House acquisition of its ought to supplement the natural growth of its. Cantor Fitzgerald has an “overweight” rating and sixteen dolars price target for CRLBF inventory.
Curaleaf is a U.S. MSO which runs in twenty three states. Among those states is New Jersey, which may represent the largest opportunity with the states that legalized recreational marijuana on Election Day. Not simply will Curaleaf gain from the new Jersey market, but Zuanic says Curaleaf will probably draw customers from neighboring Pennsylvania and New York. Curaleaf reported impressive 142 % revenue growth and 180 % gross earnings development year over year in the second quarter and also holds a leadership position in key states. Cantor Fitzgerald has an “overweight” rating and eighteen dolars price target for CURLF stock.
Green Thumb Industries (GTBIF)
Green Thumb Industries is actually a U.S. MSO which works in 12 states, like California and Florida. Zuanic states Green Thumb has the 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 Jersey and Zuanic is projecting revenue will develop from $527 million in 2020 to $982 million by 2022. Additionally, 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 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 talking with Rivers, Zuanic says he is confident in Trulieve’s capacity to maintain a dominant market share of the high growth Florida medical marijuana market. Additionally, Zuanic affirms Trulieve has a tremendous opportunity to produce the businesses of its in other states, like Connecticut, Massachusetts, and California. Lastly, he’s upbeat Florida voters might legalize recreational marijuana in the 2022 midterm election. Cantor Fitzgerald has an “overweight” rating and $60 cost target for TCNNF inventory.
GW Pharmaceuticals (GWPH)
In contrast to the other cannabis stocks on this list, GW Pharmaceuticals is a biopharmaceutical company focused on creating cannabis-based drug therapies. 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 states GW’s third quarter Epidiolex sales exceeded the expectations of his. Also, he sees several bullish catalysts for GW with the end of 2021, which includes further penetration into additional rollout and adult customers in Europe. Cantor has an “overweight” rating and $165 cost target for GWPH stock.