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 potential geographic footprint of cannabis multistate operators, or perhaps MSOs. Unfortunately for cannabis investors, Democrats might not gain control of the Senate, possibly restricting considerable federal cannabis reform. To be a result, a few cannabis stocks initially dropped following the election. Here are the best cannabis stocks to invest in following the election, according to Cantor Fitzgerald.
Flower price depreciation has been a major problem for just about all Canadian licensed producers, or maybe LPs. Nevertheless, 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 may still be a minimum of 2 years away, but decriminalization of adult-use marijuana and potential federal rescheduling of cannabis could raise Aphria as well as other Canadian LPs, Zuanic says. He says Aphria has multiple positive catalysts forward 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 tells you OrganiGram’s retail sales trends in the third quarter were fairly strong in contrast to various other Canadian LPs. But, Hifyre cannabis sales data for October recommend OrganiGram sales had been down twenty five % month over month compared with a 5 % decline for the complete Canadian retail store. OrganiGram has disappointed investors with the sluggish revenue growth of its and cash burn, but Zuanic is hopeful the business may find its way to growth and profitability in the long term. Cantor Fitzgerald has an “overweight” rating and $4.07 cost target for OGI inventory.
While Canadian cannabis stocks are struggling, U.S. multistate operators like Cresco Labs are thriving. In the next quarter, Cresco beat consensus analyst sales estimates by thirty % and exceeded their earnings before interest, taxes, depreciation and amortization expectations by almost 200 %. Zuanic says Cresco’s 42 % sequential sales growth in the second quarter was the most effective growth rate with all of Cresco’s big MSO peers. Zuanic alleges the Illinois industry is going to 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 cost target for CRLBF stock.
Curaleaf is actually a U.S. MSO that operates in 23 states. One of those states is actually New Jersey, that might represent the largest opportunity among the states which legalized recreational marijuana on Election Day. Not only will Curaleaf gain from the new Jersey market, but Zuanic says Curaleaf will likely draw customers from neighboring New York and Pennsylvania. Curaleaf noted astounding 142 % revenue growth as well as 180 % disgusting profit 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 a U.S. MSO that runs in twelve states, like California and Florida. Zuanic reveals 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 its balance sheet, 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 further legalization in Pennsylvania, New York, Connecticut and Maryland 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 which operates 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 affirms Trulieve includes a significant opportunity to produce its companies in other states, like Connecticut, Massachusetts, and California. 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 inventory.
GW Pharmaceuticals (GWPH)
Unlike the other cannabis stocks on this list, GW Pharmaceuticals is a biopharmaceutical business centered 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 states GW’s third-quarter Epidiolex sales exceeded the expectations of his. He also sees several bullish catalysts for GW with the conclusion of 2021, including further penetration into more rollout and adult patients in Europe. Cantor has an “overweight” rating and $165 price target for GWPH stock.