The election results are bullish for marijuana stocks.
Cannabis stock investors didn’t get the blue wave these were hoping for in the U.S. election, but just five status marijuana legalization methods 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 may not gain control of the Senate, possibly limiting significant federal cannabis reform. As a result, a few cannabis stocks initially dropped following the election. Allow me to share the very best cannabis stocks to buy following the election, according to Cantor Fitzgerald.
Flower priced depreciation continues to be a big problem for just about all Canadian licensed producers, or perhaps LPs. Nonetheless, analyst Pablo Zuanic says Canadian LPs as Aphria may have “positive collateral benefits” from the U.S. election, assuming Joe Biden takes over the White House. Federal legalization might still be no less than 2 years away, but decriminalization of adult use marijuana and potential federal rescheduling of cannabis may increase Aphria and other Canadian LPs, Zuanic says. He claims Aphria has a number of positive catalysts forward in the near term, including a surge in exports. Cantor Fitzgerald has an “overweight” rating and $8.95 price 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 had been relatively strong compared with various other Canadian LPs. However, Hifyre cannabis sales data for October suggest OrganiGram sales had been down twenty five % month over month compared with a 5 % decline for the entire Canadian retail market. OrganiGram has disappointed investors with its sluggish revenue growth as well as cash burn up, but Zuanic is hopeful the company may find the way of its to growth and profits in the long run. Cantor Fitzgerald has an “overweight” rating and $4.07 price target for OGI stock.
While Canadian cannabis stocks are actually struggling, U.S. multistate operators as Cresco Labs are actually thriving. In the next quarter, Cresco beat consensus analyst sales estimates by 30 % and exceeded their earnings before amortization expectations, depreciation, taxes, and interest by almost 200 %. Zuanic says Cresco’s forty two % sequential sales advancement in the second quarter was the very best growth rate among almost all of Cresco’s big MSO peers. Zuanic alleges the Illinois market is going to be a serious near-term growth driver for Cresco, and its Origin House acquisition should supplement the organic 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. Among those states is New Jersey, which may represent probably the largest opportunity among the states that legalized recreational marijuana on Election Day. Not merely will Curaleaf gain from the brand new Jersey sector, but Zuanic says Curaleaf will likely draw customers from neighboring Pennsylvania and New York. Curaleaf noted astounding 142 % revenue growth and 180 % disgusting profit development year over year in the next quarter and 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 that operates in 12 states, like California and Florida. Zuanic claims Green Thumb has the best risk profile of Cantor’s top rated MSOs. Green Thumb has expanded its footprint in Illinois and Pennsylvania without overextending the balance sheet of its, it already has a sizable presence in New Zuanic and Jersey is actually projecting revenue will develop from $527 million in 2020 to $982 million by 2022. Also, he anticipates further legalization in Pennsylvania, New York, Connecticut and Maryland in coming years. Cantor Fitzgerald has an “overweight” rating and $29 cost target for GTBIF inventory.
Trulieve Cannabis Corp. (TCNNF)
Trulieve Cannabis is actually 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 comfortable in Trulieve’s ability to maintain a dominant market share of the high growth Florida medical marijuana market. Additionally, Zuanic says Trulieve features a substantial alternative to produce its businesses in some other states, including California, Massachusetts and Connecticut. Last but not least, he’s optimistic Florida voters might legalize recreational marijuana in the 2022 midterm election. Cantor Fitzgerald has an “overweight” rating and $60 cost target for TCNNF stock.
GW Pharmaceuticals (GWPH)
As opposed to the other cannabis stocks on this list, GW Pharmaceuticals is a biopharmaceutical company centered 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 treatment of pediatric epilepsy. Cantor analyst Charles Duncan states GW’s third quarter Epidiolex sales exceeded his expectations. Also, he sees assorted bullish catalysts for GW through the conclusion of 2021, which includes further penetration into additional rollout and adult clientele in Europe. Cantor has an “overweight” rating and $165 cost target for GWPH stock.