The election results are bullish for marijuana stocks.
Cannabis stock investors did not get the blue wave these were hoping for in the U.S. election, but all 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 restricting significant 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 invest in following the election, based on Cantor Fitzgerald.
Flower price depreciation has been a big problem for just about all Canadian licensed producers, or 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 two years away, but decriminalization of adult-use marijuana and potential federal rescheduling of cannabis can raise Aphria and other Canadian LPs, Zuanic states. He says Aphria has a number of positive catalysts ahead in the near term, including an increase 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 says OrganiGram’s retail sales trends in the third quarter were fairly strong compared with other Canadian LPs. However, Hifyre cannabis sales information for October recommend OrganiGram sales were down twenty five % month over month compared with a 5 % decline for the complete Canadian retail market. OrganiGram has disappointed investors with the sluggish revenue growth of its and cash burn, but Zuanic is actually optimistic the business may find its way to growth and profitability in the long run. Cantor Fitzgerald has an “overweight” rating and $4.07 price target for OGI stock.
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 interest, taxes, depreciation and amortization expectations by about 200 %. Zuanic affirms Cresco’s 42 % sequential sales development in the second quarter was the top growth rates with many of Cresco’s big MSO peers. Zuanic says the Illinois market will be a serious near-term growth driver for Cresco, and the Origin House acquisition of its should supplement the organic growth of its. Cantor Fitzgerald has an “overweight” rating and sixteen dolars price target for CRLBF stock.
Curaleaf is a U.S. MSO which works in twenty three states. One of those states is actually New Jersey, which may represent probably the largest opportunity with the states which legalized recreational marijuana on Election Day. Not simply will Curaleaf benefit from the new Jersey market, but Zuanic says Curaleaf may draw clients from neighboring Pennsylvania and New York. Curaleaf reported amazing 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 eighteen dolars cost target for CURLF inventory.
Green Thumb Industries (GTBIF)
Green Thumb Industries is actually a U.S. MSO that operates in twelve states, like California as well as Florida. Zuanic claims 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 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, Maryland as well as Connecticut in coming years. Cantor Fitzgerald has an “overweight” rating and twenty nine dolars cost target for GTBIF stock.
Trulieve Cannabis Corp. (TCNNF)
Trulieve Cannabis is actually an MSO that runs primarily in Florida. Zuanic recently hosted a call with Trulieve CEO Kim Rivers. After talking with Rivers, Zuanic says he’s comfortable in Trulieve’s potential to keep a dominant market share of the high-growth Florida medical marijuana market. Additionally, Zuanic says Trulieve includes a tremendous opportunity to grow its businesses in some other states, including California, Massachusetts and Connecticut. Finally, 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 various other cannabis stocks on this list, GW Pharmaceuticals is actually a biopharmaceutical company focused on creating 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 says GW’s third-quarter Epidiolex sales exceeded the expectations of his. Also, he sees several bullish catalysts for GW through the conclusion of 2021, which includes further penetration into adult clients and additional rollout in Europe. Cantor has an “overweight” rating and $165 price target for GWPH stock.