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 just 5 state marijuana legalization measures on the ballot have passed. Fun and/or medical marijuana was legalized in Arizona, Mississippi, Montana, new Jersey and South Dakota, increasing the possible geographic footprint of cannabis multistate operators, or maybe MSOs. Unfortunately for cannabis investors, Democrats might not gain control of the Senate, possibly restricting significant federal cannabis reform. As a result, a few cannabis stocks initially dropped following the election. Here are the best cannabis stocks to buy following the election, according to Cantor Fitzgerald.
Flower price depreciation has long been a major concern for almost all Canadian licensed producers, or maybe LPs. Nevertheless, analyst Pablo Zuanic reveals Canadian LPs like Aphria might 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 2 years away, but decriminalization of adult-use marijuana and potential federal rescheduling of cannabis could increase Aphria along with other Canadian LPs, Zuanic says. He says 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 price target for APHA inventory.
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. Nevertheless, Hifyre cannabis sales data for October recommend OrganiGram sales had been down twenty five % month over month in contrast to a 5 % decline for the entire Canadian retail market. OrganiGram has disappointed investors with the sluggish revenue growth of its as well as money burn, but Zuanic is actually optimistic the business will see its way to growth and profitability in the long run. Cantor Fitzgerald has an “overweight” rating and $4.07 cost target for OGI inventory.
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 their earnings before interest, taxes, depreciation and amortization expectations by nearly 200 %. Zuanic tells you Cresco’s 42 % sequential sales growth in the next quarter was the best growth rate among almost all of Cresco’s large MSO peers. Zuanic states the Illinois market is going to be a major near-term growth driver for Cresco, and the Origin House acquisition of its should supplement the natural growth of its. Cantor Fitzgerald has an “overweight” rating and sixteen dolars cost target for CRLBF stock.
Curaleaf is a U.S. MSO that runs in twenty three states. One of those states is New Jersey, which might represent the largest opportunity among the states that legalized recreational marijuana on Election Day. Not merely will Curaleaf gain from the new Jersey sector, but Zuanic says Curaleaf may draw customers from neighboring New York and Pennsylvania. Curaleaf noted impressive 142 % revenue growth and 180 % disgusting earnings growth year over year in the second quarter and 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 works in twelve states, including Florida as well as California. Zuanic claims Green Thumb has the ideal 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 currently has a sizable presence in New Zuanic and Jersey is projecting revenue will grow from $527 million in 2020 to $982 million by 2022. He also anticipates further legalization in Pennsylvania, New York, Connecticut as well as Maryland in coming years. Cantor Fitzgerald has an “overweight” rating and twenty nine dolars cost target for GTBIF inventory.
Trulieve Cannabis Corp. (TCNNF)
Trulieve Cannabis is an MSO that operates primarily in Florida. Zuanic recently hosted a call with Trulieve CEO Kim Rivers. After talking with Rivers, Zuanic says he is confident in Trulieve’s potential to keep a dominant market share of the high growth Florida medical marijuana market. Moreover, Zuanic affirms Trulieve features a tremendous alternative to grow its businesses in other states, like California, Massachusetts and Connecticut. Finally, he is upbeat Florida voters can legalize recreational marijuana in the 2022 midterm election. Cantor Fitzgerald has an “overweight” rating and $60 price target for TCNNF stock.
GW Pharmaceuticals (GWPH)
As opposed to the other cannabis stocks on this list, GW Pharmaceuticals is a biopharmaceutical business focused on developing 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 the expectations of his. Also, he sees assorted bullish catalysts for GW with 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 inventory.