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 state marijuana legalization procedures on the ballot have passed. Recreational 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 may not gain control of the Senate, potentially 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.
Aphria (ticker: APHA)
Flower price depreciation has long been a big concern for just about all Canadian licensed producers, or LPs. Nonetheless, analyst Pablo Zuanic reveals Canadian LPs like Aphria may have “positive collateral benefits” from the U.S. election, assuming Joe Biden takes more than the White House. Federal legalization may well still be no less than 2 years away, but decriminalization of adult-use marijuana and potential federal rescheduling of cannabis may boost Aphria and other Canadian LPs, Zuanic states. He claims Aphria has several positive catalysts ahead in the near term, including an increase of exports. Cantor Fitzgerald has an “overweight” rating and $8.95 cost target for APHA inventory.
OrganiGram Holdings (OGI)
Canadian LP OrganiGram has had a brutal year in 2020. Zuanic tells you OrganiGram’s retail sales trends in the third quarter had been relatively strong in contrast to various other Canadian LPs. However, Hifyre cannabis sales data for October suggest OrganiGram sales were down twenty five % month over month compared with a five % decline for the overall Canadian retail store. OrganiGram has disappointed investors with the sluggish revenue growth of its and cash burn up, but Zuanic is hopeful the small business will see its way to growth and profits in the long haul. Cantor Fitzgerald has an “overweight” rating and $4.07 cost target for OGI inventory.
Cresco Labs (CRLBF)
While Canadian cannabis stocks are actually struggling, U.S. multistate operators like Cresco Labs are thriving. In the second quarter, Cresco beat consensus analyst sales estimates by thirty % and exceeded the earnings of theirs before amortization expectations, depreciation, taxes, and interest by almost 200 %. Zuanic affirms Cresco’s 42 % sequential sales advancement in the second quarter was the very best growth rates with almost all of Cresco’s big MSO peers. Zuanic alleges the Illinois market will be a leading near term growth driver for Cresco, and its Origin House acquisition should supplement its natural growth. Cantor Fitzgerald has an “overweight” rating and sixteen dolars price target for CRLBF stock.
Curaleaf Holdings (CURLF)
Curaleaf is actually a U.S. MSO which works in twenty three states. Among those states is New Jersey, which might represent the largest opportunity with the states that legalized recreational marijuana on Election Day. Not only will Curaleaf benefit from the brand new Jersey market, but Zuanic says Curaleaf will probably draw customers from neighboring New York and Pennsylvania. Curaleaf noted impressive 142 % revenue growth as well as 180 % gross earnings growth year over year in the next quarter and also 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 which works in twelve states, like California as well as Florida. Zuanic says Green Thumb has the very best risk profile of Cantor’s top-rated MSOs. Green Thumb has expanded the footprint of its in Pennsylvania and Illinois without overextending its balance sheet, it currently has a sizable presence in New Jersey and Zuanic is actually projecting revenue will mature from $527 million in 2020 to $982 million by 2022. Additionally, he anticipates further legalization of Pennsylvania, New York, Connecticut and Maryland 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 largely in Florida. Zuanic recently hosted a call with Trulieve CEO Kim Rivers. After speaking with Rivers, Zuanic says he is confident in Trulieve’s potential to keep a dominant market share of the high growth Florida medical marijuana market. Furthermore, Zuanic affirms Trulieve features a significant chance to grow its businesses in some other states, like California, Massachusetts and Connecticut. Last but not least, he’s upbeat Florida voters can legalize recreational marijuana in the 2022 midterm election. Cantor Fitzgerald has an “overweight” rating and sixty dolars price 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 the expectations of his. He also sees several bullish catalysts for GW with the conclusion of 2021, including further penetration into more rollout and adult people in Europe. Cantor has an “overweight” rating and $165 price target for GWPH inventory.