The election results are actually bullish for marijuana stocks.
Cannabis stock investors didn’t get the blue wave these were hoping for in the U.S. election, but all five status marijuana legalization procedures on the ballot have passed. Recreational and/or medical marijuana was legalized in Arizona, Mississippi, Montana, South Dakota and new Jersey, increasing the potential geographic footprint of cannabis multistate operators, or maybe 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 purchase following the election, according to Cantor Fitzgerald.
Flower priced depreciation has long been a big problem for just about all Canadian licensed producers, or LPs. Nonetheless, analyst Pablo Zuanic says Canadian LPs as Aphria might have “positive collateral benefits” from the U.S. election, assuming Joe Biden takes over the White House. Federal legalization might still be at least two years away, but decriminalization of adult-use marijuana and potential federal rescheduling of cannabis may raise Aphria and other Canadian LPs, Zuanic states. He states Aphria has multiple 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 had been fairly strong compared with other Canadian LPs. However, 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 its sluggish revenue growth and cash burn up, but Zuanic is hopeful the business may find the way of its to growth and profits 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 next quarter, Cresco beat consensus analyst sales estimates by thirty % and exceeded the earnings of theirs before amortization expectations, depreciation, taxes, and interest by nearly 200 %. Zuanic affirms Cresco’s forty two % sequential sales growth in the next quarter was the most effective growth rate among almost all of Cresco’s big MSO peers. Zuanic alleges the Illinois market will be a serious near term growth driver for Cresco, and its Origin House acquisition should supplement its natural growth. Cantor Fitzgerald has an “overweight” rating and sixteen dolars cost target for CRLBF stock.
Curaleaf is a U.S. MSO that works in twenty three states. Among those states is actually New Jersey, that might represent probably the largest opportunity among the states that legalized recreational marijuana on Election Day. Not only will Curaleaf benefit from the new Jersey sector, but Zuanic says Curaleaf may draw clients from neighboring Pennsylvania and New York. Curaleaf noted astounding 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 eighteen dolars cost target for CURLF stock.
Green Thumb Industries (GTBIF)
Green Thumb Industries is actually a U.S. MSO that operates in 12 states, like Florida and California. Zuanic claims Green Thumb has the very best 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 currently has a sizable presence in New Zuanic and Jersey is actually projecting revenue will mature from $527 million in 2020 to $982 million by 2022. He also anticipates additional legalization of Pennsylvania, New York, Connecticut as well as Maryland in coming years. Cantor Fitzgerald has an “overweight” rating and $29 price target for GTBIF stock.
Trulieve Cannabis Corp. (TCNNF)
Trulieve Cannabis is actually an MSO that works primarily in Florida. Zuanic recently hosted a call with Trulieve CEO Kim Rivers. After speaking with Rivers, Zuanic says he is comfortable in Trulieve’s ability to maintain a dominant market share of the high growth Florida medical marijuana market. Additionally, Zuanic says Trulieve includes a significant opportunity to grow its companies in other states, including California, Massachusetts and Connecticut. Last but not least, he’s upbeat Florida voters might 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)
As opposed to the other cannabis stocks on this list, GW Pharmaceuticals is actually a biopharmaceutical company centered on developing cannabis based drug therapies. 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 his expectations. He also sees assorted bullish catalysts for GW with the tail end of 2021, including further penetration into more rollout and adult individuals in Europe. Cantor has an “overweight” rating and $165 price target for GWPH stock.