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 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 MSOs. Unfortunately for cannabis investors, Democrats might not gain control of the Senate, possibly restricting significant federal cannabis reform. Being a result, a few 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 priced depreciation continues to be a major concern for all Canadian licensed producers, or LPs. Nevertheless, analyst Pablo Zuanic says 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 still be a minimum of two years away, but decriminalization of adult-use marijuana and potential federal rescheduling of cannabis can raise Aphria along with other Canadian LPs, Zuanic says. He states Aphria has multiple positive catalysts forward in the near term, including a surge 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 tells you OrganiGram’s retail sales trends in the third quarter were relatively strong in contrast to various other Canadian LPs. Nonetheless, Hifyre cannabis sales information for October recommend OrganiGram sales were down twenty five % month over month compared with a 5 % decline for the overall Canadian retail market. OrganiGram has disappointed investors with the sluggish revenue growth of its and cash burn up, but Zuanic is actually hopeful the business will see its way to growth and profitability in the long term. Cantor Fitzgerald has an “overweight” rating and $4.07 cost target for OGI inventory.
While Canadian cannabis stocks are struggling, U.S. multistate operators like Cresco Labs are thriving. In the next quarter, Cresco beat consensus analyst sales estimates by 30 % and exceeded the earnings of theirs before interest, taxes, depreciation and amortization expectations by about 200 %. Zuanic affirms Cresco’s forty two % sequential sales advancement in the next quarter was the most effective growth rates with almost all of Cresco’s large MSO peers. Zuanic states the Illinois market will be a major 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 price target for CRLBF stock.
Curaleaf is actually a U.S. MSO which runs in twenty three states. One of those states is actually New Jersey, which might represent probably the largest opportunity among the states that legalized recreational marijuana on Election Day. Not only will Curaleaf benefit from the new Jersey sector, but Zuanic says Curaleaf will probably draw clients from neighboring New York and Pennsylvania. Curaleaf reported impressive 142 % revenue growth and 180 % gross 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 price target for CURLF inventory.
Green Thumb Industries (GTBIF)
Green Thumb Industries is actually a U.S. MSO that runs in 12 states, like California and Florida. Zuanic says Green Thumb has the very best risk profile of Cantor’s top rated MSOs. Green Thumb has expanded its footprint in Illinois and Pennsylvania without overextending the balance sheet of its, it currently 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. Additionally, he anticipates further legalization in Pennsylvania, New York, Maryland as well as Connecticut in coming years. Cantor Fitzgerald has an “overweight” rating and $29 price target for GTBIF stock.
Trulieve Cannabis Corp. (TCNNF)
Trulieve Cannabis is an MSO which runs primarily in Florida. Zuanic recently hosted a call with Trulieve CEO Kim Rivers. After speaking with Rivers, Zuanic says he’s confident in Trulieve’s potential to keep a dominant market share of the high growth Florida medical marijuana market. Additionally, Zuanic affirms Trulieve has a tremendous alternative to grow the companies of its in other states, like California, Massachusetts and Connecticut. Lastly, he’s optimistic Florida voters can legalize recreational marijuana in the 2022 midterm election. Cantor Fitzgerald has an “overweight” rating and $60 cost target for TCNNF stock.
GW Pharmaceuticals (GWPH)
Unlike the other cannabis stocks on this list, GW Pharmaceuticals is a biopharmaceutical business focused on creating cannabis-based drug treatments. 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 says GW’s third-quarter Epidiolex sales exceeded his expectations. Also, he sees several bullish catalysts for GW with the tail end of 2021, including further penetration into adult people and more rollout in Europe. Cantor has an “overweight” rating and $165 cost target for GWPH stock.