The election results are bullish for marijuana stocks.
Cannabis stock investors did not get the blue wave they 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, South Dakota and new Jersey, increasing the potential geographic footprint of cannabis multistate operators, or MSOs. Unfortunately for cannabis investors, Democrats might not gain control of the Senate, possibly restricting considerable federal cannabis reform. To be a result, some cannabis stocks initially dropped following the election. Here are the very best cannabis stocks to buy following the election, as reported by Cantor Fitzgerald.
Flower price depreciation has been a significant problem for almost all Canadian licensed producers, or perhaps LPs. However, analyst Pablo Zuanic states 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 might still be at least 2 years away, but decriminalization of adult-use marijuana and potential federal rescheduling of cannabis can increase Aphria along with other Canadian LPs, Zuanic says. He claims Aphria has a number of positive catalysts in front 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 had been fairly strong in contrast to other Canadian LPs. But, Hifyre cannabis sales data for October suggest OrganiGram sales had been down 25 % month over month in contrast to a 5 % decline for the overall Canadian retail store. OrganiGram has disappointed investors with the sluggish revenue growth of its and money burn, 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 price target for OGI stock.
While Canadian cannabis stocks are actually struggling, U.S. multistate operators as Cresco Labs are actually thriving. In the second quarter, Cresco beat consensus analyst sales estimates by thirty % and exceeded their earnings before interest, taxes, depreciation and amortization expectations by nearly 200 %. Zuanic says Cresco’s 42 % sequential sales advancement in the second quarter was the very best growth rate among all of Cresco’s large MSO peers. Zuanic alleges the Illinois industry will be a leading near-term growth driver for Cresco, and the Origin House acquisition of its should supplement its organic growth. Cantor Fitzgerald has an “overweight” rating and sixteen dolars cost target for CRLBF stock.
Curaleaf is actually a U.S. MSO that works in twenty three states. One of those states is New Jersey, that might represent probably the largest opportunity among the states that legalized recreational marijuana on Election Day. Not merely will Curaleaf benefit from the new Jersey market, but Zuanic says Curaleaf will probably draw clients from neighboring Pennsylvania and New York. Curaleaf reported amazing 142 % revenue growth as well as 180 % disgusting earnings development year over year in the next quarter and holds a leadership position in key states. Cantor Fitzgerald has an “overweight” rating and $18 cost target for CURLF inventory.
Green Thumb Industries (GTBIF)
Green Thumb Industries is a U.S. MSO which works in twelve states, like Florida as well as California. Zuanic states Green Thumb has the very best risk profile of Cantor’s top rated MSOs. Green Thumb has expanded the footprint of its in Pennsylvania and Illinois without overextending its balance sheet, it already has a sizable presence in New Zuanic and Jersey is projecting revenue will grow from $527 million in 2020 to $982 million by 2022. Additionally, he anticipates further legalization in Pennsylvania, New York, Connecticut as well as Maryland 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 an MSO which works primarily in Florida. Zuanic recently hosted a call with Trulieve CEO Kim Rivers. After talking with Rivers, Zuanic says he is confident in Trulieve’s ability to keep a dominant market share of the high growth Florida medical marijuana market. In addition, Zuanic affirms Trulieve features a significant alternative to grow the companies of its in some other states, like Connecticut, Massachusetts, and California. Finally, he’s 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 inventory.
GW Pharmaceuticals (GWPH)
In contrast to the other cannabis stocks on this list, GW Pharmaceuticals is a biopharmaceutical company focused on developing cannabis-based drug treatments. 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 states GW’s third-quarter Epidiolex sales exceeded the expectations of his. He also sees assorted bullish catalysts for GW with the end of 2021, which includes further penetration into adult individuals and additional rollout in Europe. Cantor has an “overweight” rating and $165 price target for GWPH inventory.