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 5 status marijuana legalization measures on the ballot have passed. Fun 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 MSOs. Unfortunately for cannabis investors, Democrats may not gain control of the Senate, potentially limiting significant federal cannabis reform. To be 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 concern for all Canadian licensed producers, or perhaps LPs. Nonetheless, analyst Pablo Zuanic says Canadian LPs like Aphria might have “positive collateral benefits” from the U.S. election, assuming Joe Biden takes more than the White House. Federal legalization may still be at least two years away, but decriminalization of adult-use marijuana and potential federal rescheduling of cannabis may boost Aphria along with other Canadian LPs, Zuanic says. He says Aphria has a number of positive catalysts ahead in the near term, including a rise of exports. Cantor Fitzgerald has an “overweight” rating and $8.95 price target for APHA inventory.
Canadian LP OrganiGram has had a brutal year of 2020. Zuanic says OrganiGram’s retail sales trends in the third quarter had been relatively strong compared with various other Canadian LPs. Nonetheless, Hifyre cannabis sales information for October suggest OrganiGram sales were down 25 % month over month compared with a five % decline for the complete Canadian retail market. OrganiGram has disappointed investors with the sluggish revenue growth of its as well as money burn, but Zuanic is actually hopeful the company will see the way of its to growth and profitability in the long term. Cantor Fitzgerald has an “overweight” rating and $4.07 cost target for OGI stock.
While Canadian cannabis stocks are actually 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 about 200 %. Zuanic tells you Cresco’s forty two % sequential sales advancement in the next quarter was the very best growth rates with almost all of Cresco’s big MSO peers. Zuanic says the Illinois industry will be a serious 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 runs in twenty three states. One of those states is actually New Jersey, that might represent the largest opportunity among the states that legalized recreational marijuana on Election Day. Not only will Curaleaf gain from the brand new Jersey market, but Zuanic says Curaleaf may draw customers from neighboring New York and Pennsylvania. Curaleaf noted amazing 142 % revenue growth and 180 % disgusting profit growth year over year in the next quarter and also holds a leadership position in key states. Cantor Fitzgerald has an “overweight” rating and $18 cost target for CURLF stock.
Green Thumb Industries (GTBIF)
Green Thumb Industries is actually a U.S. MSO that runs in twelve states, like California as well as Florida. Zuanic states 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 currently has a sizable presence in New Zuanic and Jersey is projecting revenue will develop from $527 million in 2020 to $982 million by 2022. Also, he anticipates further legalization in Pennsylvania, New York, Maryland as well as Connecticut 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 runs 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 capacity to keep a dominant market share of the high-growth Florida medical marijuana industry. Furthermore, Zuanic affirms Trulieve features a tremendous alternative to produce the businesses of its in other states, including California, Massachusetts and Connecticut. Finally, he is upbeat Florida voters could legalize recreational marijuana in the 2022 midterm election. Cantor Fitzgerald has an “overweight” rating and sixty dolars price target for TCNNF stock.
GW Pharmaceuticals (GWPH)
As opposed to the other cannabis stocks on this list, GW Pharmaceuticals is a biopharmaceutical business 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 the expectations of his. He also sees assorted bullish catalysts for GW through the conclusion of 2021, including further penetration into more rollout and adult clientele in Europe. Cantor has an “overweight” rating and $165 cost target for GWPH stock.