The election results are actually bullish for marijuana stocks.
Cannabis stock investors didn’t get the blue wave they were hoping for in the U.S. election, but all 5 status marijuana legalization procedures on the ballot have passed. Fun 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 maybe MSOs. Unfortunately for cannabis investors, Democrats may not gain control of the Senate, potentially restricting considerable federal cannabis reform. Being a result, a few cannabis stocks initially dropped following the election. Allow me to share the best cannabis stocks to purchase following the election, based on Cantor Fitzgerald.
Flower price depreciation has long been a big issue for almost all Canadian licensed producers, or perhaps LPs. Nevertheless, analyst Pablo Zuanic says 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 two years away, but decriminalization of adult use marijuana and potential federal rescheduling of cannabis may increase Aphria as well as other Canadian LPs, Zuanic states. He says Aphria has several positive catalysts in front in the near term, including a surge of exports. Cantor Fitzgerald has an “overweight” rating and $8.95 price target for APHA stock.
Canadian LP OrganiGram has had a brutal year of 2020. Zuanic says OrganiGram’s retail sales trends in the third quarter had been relatively strong compared with other Canadian LPs. However, Hifyre cannabis sales information for October recommend OrganiGram sales were down 25 % month over month compared with a 5 % decline for the complete Canadian retail store. OrganiGram has disappointed investors with the sluggish revenue growth of its as well as cash burn up, but Zuanic is actually hopeful the company will see the way of its to growth and earnings in the long run. 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 thriving. In the second quarter, Cresco beat consensus analyst sales estimates by 30 % and exceeded the earnings of theirs before amortization expectations, depreciation, taxes, and interest by nearly 200 %. Zuanic tells you Cresco’s forty two % sequential sales growth in the second quarter was the best growth rates among many of Cresco’s large MSO peers. Zuanic states the Illinois market is going to be a leading near-term growth driver for Cresco, and its Origin House acquisition should supplement its organic growth. Cantor Fitzgerald has an “overweight” rating and sixteen dolars price target for CRLBF inventory.
Curaleaf is actually a U.S. MSO that works in 23 states. One of those states is actually New Jersey, which may represent probably the largest opportunity with the states that legalized recreational marijuana on Election Day. Not merely will Curaleaf gain from the brand new Jersey sector, but Zuanic says Curaleaf will likely draw clients from neighboring Pennsylvania and New York. Curaleaf noted astounding 142 % revenue growth as well as 180 % disgusting earnings development year over year in the second quarter and holds a leadership position in key states. Cantor Fitzgerald has an “overweight” rating and eighteen dolars cost target for CURLF stock.
Green Thumb Industries (GTBIF)
Green Thumb Industries is a U.S. MSO which runs in 12 states, like Florida as well as California. Zuanic reveals 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 its balance sheet, it already has a sizable presence in New Jersey and Zuanic is projecting revenue will grow from $527 million in 2020 to $982 million by 2022. Also, he anticipates further legalization of Pennsylvania, New York, Maryland and 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 an MSO that runs largely in Florida. Zuanic recently hosted a call with Trulieve CEO Kim Rivers. After speaking with Rivers, Zuanic says he’s comfortable in Trulieve’s capacity to keep a dominant market share of the high growth Florida medical marijuana industry. Additionally, Zuanic affirms Trulieve has a substantial alternative to produce its companies in some other states, like Connecticut, Massachusetts, and California. Finally, he is optimistic Florida voters might legalize recreational marijuana in the 2022 midterm election. Cantor Fitzgerald has an “overweight” rating and $60 price target for TCNNF stock.
GW Pharmaceuticals (GWPH)
In contrast to the various other cannabis stocks on this list, GW Pharmaceuticals is a biopharmaceutical company centered on creating 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. Also, he sees assorted bullish catalysts for GW through the conclusion of 2021, which includes further penetration into additional rollout and adult individuals in Europe. Cantor has an “overweight” rating and $165 cost target for GWPH stock.