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 just 5 status marijuana legalization measures 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 maybe MSOs. Unfortunately for cannabis investors, Democrats may not gain control of the Senate, potentially limiting significant federal cannabis reform. Being a result, some cannabis stocks initially dropped following the election. Here are the very best cannabis stocks to purchase following the election, as reported by Cantor Fitzgerald.
Flower priced depreciation has been an important problem for almost all Canadian licensed producers, or perhaps LPs. But, analyst Pablo Zuanic states Canadian LPs as Aphria may have “positive collateral benefits” from the U.S. election, assuming Joe Biden takes more than the White House. Federal legalization may still be no less than two years away, but decriminalization of adult use marijuana and potential federal rescheduling of cannabis can raise Aphria along with other Canadian LPs, Zuanic states. He says Aphria has multiple positive catalysts in front in the near term, including a surge in exports. Cantor Fitzgerald has an “overweight” rating and $8.95 price 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 had been fairly strong in comparison with other Canadian LPs. Nevertheless, Hifyre cannabis sales information for October recommend OrganiGram sales were down 25 % month over month in contrast to a 5 % decline for the entire Canadian retail market. OrganiGram has disappointed investors with its sluggish revenue growth and money burn up, but Zuanic is actually optimistic the company may find its way to profitability and growth 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 as Cresco Labs are actually thriving. In the next quarter, Cresco beat consensus analyst sales estimates by 30 % and exceeded their earnings before interest, taxes, depreciation and amortization expectations by almost 200 %. Zuanic affirms Cresco’s 42 % sequential sales development in the second quarter was the best growth rates among all of Cresco’s large MSO peers. Zuanic says the Illinois market is going to be a major 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 $16 cost target for CRLBF stock.
Curaleaf is actually a U.S. MSO which works in twenty three states. One of those states is actually New Jersey, that might represent probably the largest opportunity among the states which legalized recreational marijuana on Election Day. Not only will Curaleaf benefit from the new Jersey sector, but Zuanic says Curaleaf may draw clients from neighboring Pennsylvania and New York. Curaleaf noted 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 actually a U.S. MSO that runs in 12 states, including California and Florida. Zuanic says Green Thumb has the ideal risk profile of Cantor’s top rated MSOs. Green Thumb has expanded its footprint in Illinois and Pennsylvania without overextending its balance sheet, it currently has a sizable presence in New Zuanic and Jersey is projecting revenue will mature from $527 million in 2020 to $982 million by 2022. He also anticipates additional legalization of 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 actually an MSO that operates 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 ability to keep a dominant market share of the high-growth Florida medical marijuana industry. In addition, Zuanic says Trulieve has a significant alternative to grow its companies in some other states, like California, Massachusetts and Connecticut. Lastly, 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 inventory.
GW Pharmaceuticals (GWPH)
In contrast to the various other cannabis stocks on this list, GW Pharmaceuticals is a biopharmaceutical business focused on developing cannabis based drug therapies. The company’s lead drug Epidiolex has been approved by the Food as well as Drug Administration for the therapy of pediatric epilepsy. Cantor analyst Charles Duncan states GW’s third quarter Epidiolex sales exceeded the expectations of his. Also, he sees several bullish catalysts for GW with the end of 2021, which includes further penetration into adult clientele and additional rollout in Europe. Cantor has an “overweight” rating and $165 price target for GWPH stock.