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 state marijuana legalization methods 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 perhaps MSOs. Unfortunately for cannabis investors, Democrats might not gain control of the Senate, potentially restricting significant federal cannabis reform. As a result, some cannabis stocks initially dropped following the election. Allow me to share the best cannabis stocks to buy following the election, as reported by Cantor Fitzgerald.
Flower price depreciation continues to be a big issue for all Canadian licensed producers, or maybe LPs. Nonetheless, analyst Pablo Zuanic reveals Canadian LPs like Aphria might have “positive collateral benefits” from the U.S. election, assuming Joe Biden takes over the White House. Federal legalization may well still be no less than two years away, but decriminalization of adult-use marijuana and potential federal rescheduling of cannabis may raise Aphria along with other Canadian LPs, Zuanic states. He states Aphria has several positive catalysts ahead in the near term, including a rise of exports. Cantor Fitzgerald has an “overweight” rating and $8.95 cost target for APHA inventory.
Canadian LP OrganiGram has had a brutal year in 2020. Zuanic says OrganiGram’s retail sales trends in the third quarter were fairly strong compared with other Canadian LPs. Nonetheless, Hifyre cannabis sales information for October recommend OrganiGram sales had been down 25 % month over month in contrast to a five % decline for the entire Canadian retail store. OrganiGram has disappointed investors with the sluggish revenue growth of its and money burn up, but Zuanic is optimistic the company will see the way of its to earnings and growth in the long run. Cantor Fitzgerald has an “overweight” rating and $4.07 cost target for OGI inventory.
While Canadian cannabis stocks are struggling, U.S. multistate operators as Cresco Labs are actually 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 about 200 %. Zuanic tells you Cresco’s 42 % sequential sales expansion in the second quarter was the very best growth rates among many of Cresco’s big MSO peers. Zuanic says the Illinois industry is going to be a leading near term growth driver for Cresco, and its Origin House acquisition ought to supplement the organic growth of its. Cantor Fitzgerald has an “overweight” rating and $16 cost target for CRLBF inventory.
Curaleaf is a U.S. MSO that operates in twenty three states. Among those states is actually New Jersey, which may represent probably the largest opportunity with the states that legalized recreational marijuana on Election Day. Not merely will Curaleaf gain from the brand new Jersey market, but Zuanic says Curaleaf will probably draw customers from neighboring New York and Pennsylvania. Curaleaf noted impressive 142 % revenue growth as well as 180 % disgusting 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 cost target for CURLF stock.
Green Thumb Industries (GTBIF)
Green Thumb Industries is a U.S. MSO that runs in twelve states, like Florida and California. Zuanic says Green Thumb has the best risk profile of Cantor’s top rated MSOs. Green Thumb has expanded the footprint of its in Illinois and Pennsylvania without overextending the balance sheet of its, it already has a sizable presence in New Zuanic and Jersey is projecting revenue will mature from $527 million in 2020 to $982 million by 2022. He also anticipates additional legalization of Pennsylvania, New York, Connecticut and Maryland 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 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 confident in Trulieve’s potential to maintain a dominant market share of the high growth Florida medical marijuana industry. In addition, Zuanic affirms Trulieve includes a tremendous chance to produce its companies in some other states, including California, Massachusetts and Connecticut. Last but not least, he is optimistic Florida voters can legalize recreational marijuana in the 2022 midterm election. Cantor Fitzgerald has an “overweight” rating and sixty dolars cost target for TCNNF stock.
GW Pharmaceuticals (GWPH)
Unlike the other cannabis stocks on this list, GW Pharmaceuticals is a biopharmaceutical business focused on developing cannabis based drug therapies. The company’s lead drug Epidiolex has been approved by the Food and Drug Administration for the therapy of pediatric epilepsy. Cantor analyst Charles Duncan says GW’s third quarter Epidiolex sales exceeded the expectations of his. Also, he sees several bullish catalysts for GW through the tail end of 2021, which includes further penetration into more rollout and adult customers in Europe. Cantor has an “overweight” rating and $165 cost target for GWPH stock.