The election results are actually bullish for marijuana stocks.
Cannabis stock investors didn’t get the blue wave they were hoping for in the U.S. election, but all five state marijuana legalization methods 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 perhaps MSOs. Unfortunately for cannabis investors, Democrats may not gain control of the Senate, potentially limiting considerable federal cannabis reform. To be a result, some cannabis stocks initially dropped following the election. Allow me to share the very best cannabis stocks to buy following the election, as reported by Cantor Fitzgerald.
Flower price depreciation has long been a significant concern for almost all Canadian licensed producers, or perhaps LPs. However, analyst Pablo Zuanic claims Canadian LPs like Aphria could have “positive collateral benefits” from the U.S. election, assuming Joe Biden takes more than the White House. Federal legalization may still be a minimum of two years away, but decriminalization of adult-use marijuana and potential federal rescheduling of cannabis could boost Aphria as well as other Canadian LPs, Zuanic says. He says Aphria has several positive catalysts forward in the near term, including a surge of exports. Cantor Fitzgerald has an “overweight” rating and $8.95 cost target for APHA stock.
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. Nevertheless, Hifyre cannabis sales information for October suggest OrganiGram sales had been down twenty five % month over month compared with a 5 % decline for the entire Canadian retail store. OrganiGram has disappointed investors with its sluggish revenue growth and money burn, but Zuanic is hopeful the small business will see its way to growth and earnings in the long haul. 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 like Cresco Labs are thriving. In the second quarter, Cresco beat consensus analyst sales estimates by thirty % and exceeded their earnings before amortization expectations, depreciation, taxes, and interest by nearly 200 %. Zuanic tells you Cresco’s 42 % sequential sales development in the second quarter was the top growth rate among almost all of Cresco’s big MSO peers. Zuanic says the Illinois market is going to be a leading near-term growth driver for Cresco, and the Origin House acquisition of its 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 works in 23 states. Among those states is New Jersey, that might represent probably the largest opportunity with the states that legalized recreational marijuana on Election Day. Not merely will Curaleaf gain from the new Jersey sector, but Zuanic says Curaleaf will likely draw customers from neighboring New York and Pennsylvania. Curaleaf reported impressive 142 % revenue growth and 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 $18 price target for CURLF stock.
Green Thumb Industries (GTBIF)
Green Thumb Industries is a U.S. MSO which operates in twelve states, including California as well as Florida. Zuanic reveals Green Thumb has the 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 already has a sizable presence in New Jersey and Zuanic is actually projecting revenue will develop from $527 million in 2020 to $982 million by 2022. Additionally, he anticipates further legalization of Pennsylvania, New York, Maryland and Connecticut 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 operates largely in Florida. Zuanic recently hosted a call with Trulieve CEO Kim Rivers. After talking with Rivers, Zuanic says he is comfortable in Trulieve’s capacity to maintain a dominant market share of the high growth Florida medical marijuana industry. Moreover, Zuanic affirms Trulieve features a substantial opportunity to produce its companies in other states, like California, Massachusetts and Connecticut. Last but not least, he’s upbeat Florida voters could 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 company centered on developing cannabis-based drug therapies. 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. Also, he sees assorted bullish catalysts for GW with the conclusion of 2021, which includes further penetration into additional rollout and adult patients in Europe. Cantor has an “overweight” rating and $165 price target for GWPH stock.