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 five state 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 perhaps MSOs. Unfortunately for cannabis investors, Democrats might not gain control of the Senate, possibly limiting significant federal cannabis reform. Being a result, a few cannabis stocks initially dropped following the election. Here are the very best cannabis stocks to purchase following the election, according to Cantor Fitzgerald.
Flower price depreciation continues to be an important problem for just about all Canadian licensed producers, or maybe LPs. But, analyst Pablo Zuanic says 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 a minimum of two years away, but decriminalization of adult-use marijuana and potential federal rescheduling of cannabis could raise Aphria as well as other Canadian LPs, Zuanic states. He states Aphria has multiple positive catalysts forward in the near term, including a surge in exports. Cantor Fitzgerald has an “overweight” rating and $8.95 cost target for APHA stock.
Canadian LP OrganiGram has had a brutal year in 2020. Zuanic affirms OrganiGram’s retail sales trends in the third quarter were relatively strong in contrast to various other Canadian LPs. But, Hifyre cannabis sales information for October recommend OrganiGram sales had been down twenty five % month over month in contrast to a 5 % decline for the entire Canadian retail store. OrganiGram has disappointed investors with its sluggish revenue growth and cash burn up, but Zuanic is optimistic the small business will find the way of its to growth and profitability in the long haul. Cantor Fitzgerald has an “overweight” rating and $4.07 cost target for OGI inventory.
While Canadian cannabis stocks are actually struggling, U.S. multistate operators like 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 nearly 200 %. Zuanic says Cresco’s forty two % sequential sales growth in the second quarter was the most effective growth rates with all of Cresco’s large MSO peers. Zuanic alleges the Illinois industry is going to be a serious near-term growth driver for Cresco, and the Origin House acquisition of its should supplement its natural growth. Cantor Fitzgerald has an “overweight” rating and sixteen dolars cost target for CRLBF stock.
Curaleaf is actually a U.S. MSO that runs in 23 states. One of those states is New Jersey, which might represent the largest opportunity with the states which legalized recreational marijuana on Election Day. Not only will Curaleaf benefit from the brand new Jersey market, but Zuanic says Curaleaf will probably draw clients from neighboring Pennsylvania and New York. Curaleaf noted impressive 142 % revenue growth as well as 180 % disgusting earnings growth year over year in the second quarter and also 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 which runs in 12 states, including Florida and California. Zuanic claims Green Thumb has the very best risk profile of Cantor’s top-rated MSOs. Green Thumb has expanded the footprint of its 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 grow from $527 million in 2020 to $982 million by 2022. Also, he anticipates additional 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 actually an MSO that works 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. Furthermore, Zuanic affirms Trulieve has a significant chance to grow its businesses in some other states, including California, Massachusetts and Connecticut. Lastly, he’s upbeat Florida voters can 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 business centered 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 says GW’s third-quarter Epidiolex sales exceeded the expectations of his. He also sees several bullish catalysts for GW through the conclusion of 2021, including further penetration into more rollout and adult customers in Europe. Cantor has an “overweight” rating and $165 cost target for GWPH stock.