The election results are actually 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 status marijuana legalization measures on the ballot have passed. Fun and/or medical marijuana was legalized in Arizona, Mississippi, Montana, South Dakota and new Jersey, increasing the possible geographic footprint of cannabis multistate operators, or MSOs. Unfortunately for cannabis investors, Democrats might not gain control of the Senate, possibly limiting significant 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 priced depreciation has been a big problem for just about all Canadian licensed producers, or LPs. Nonetheless, analyst Pablo Zuanic reveals Canadian LPs like Aphria could have “positive collateral benefits” from the U.S. election, assuming Joe Biden takes more than the White House. Federal legalization may well still be a minimum of 2 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 multiple positive catalysts forward in the near term, including a surge in 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 says OrganiGram’s retail sales trends in the third quarter were relatively strong in contrast to various other Canadian LPs. Nevertheless, Hifyre cannabis sales information for October recommend OrganiGram sales had been down 25 % month over month compared with a five % decline for the overall Canadian retail market. OrganiGram has disappointed investors with the sluggish revenue growth of its and cash burn, but Zuanic is hopeful the business will see the way of its to profitability and growth in the long term. 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 thriving. In the second quarter, Cresco beat consensus analyst sales estimates by 30 % and exceeded their earnings before interest, taxes, depreciation and amortization expectations by almost 200 %. Zuanic tells you Cresco’s forty two % sequential sales advancement in the next quarter was the best growth rates with all of Cresco’s big MSO peers. Zuanic states the Illinois industry is going to be a leading near-term growth driver for Cresco, and its Origin House acquisition ought to supplement its natural growth. Cantor Fitzgerald has an “overweight” rating and sixteen dolars cost target for CRLBF inventory.
Curaleaf is a U.S. MSO which runs in 23 states. Among those states is actually New Jersey, which might represent the largest opportunity among the states that legalized recreational marijuana on Election Day. Not only will Curaleaf gain from the brand new Jersey sector, but Zuanic says Curaleaf may draw customers from neighboring New York and Pennsylvania. Curaleaf reported astounding 142 % revenue growth and 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 price target for CURLF stock.
Green Thumb Industries (GTBIF)
Green Thumb Industries is a U.S. MSO that runs in 12 states, including California as well as Florida. Zuanic reveals Green Thumb has the ideal risk profile of Cantor’s top-rated MSOs. Green Thumb has expanded its footprint 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 mature from $527 million in 2020 to $982 million by 2022. Additionally, he anticipates additional 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 inventory.
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 talking with Rivers, Zuanic says he’s confident in Trulieve’s ability to maintain a dominant market share of the high-growth Florida medical marijuana industry. Furthermore, Zuanic says Trulieve includes a tremendous opportunity to produce its businesses in other states, like California, Massachusetts and Connecticut. Last but not least, he is upbeat Florida voters can legalize recreational marijuana in the 2022 midterm election. Cantor Fitzgerald has an “overweight” rating and sixty dolars cost target for TCNNF stock.
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 treatment of pediatric epilepsy. Cantor analyst Charles Duncan states GW’s third quarter Epidiolex sales exceeded his expectations. He also sees several bullish catalysts for GW with the tail end of 2021, including further penetration into adult customers and additional rollout in Europe. Cantor has an “overweight” rating and $165 price target for GWPH inventory.