The election results are actually bullish for marijuana stocks.
Cannabis stock investors didn’t get the blue wave these were hoping for in the U.S. election, but all 5 status marijuana legalization methods 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 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 price depreciation has long been an important problem for almost all Canadian licensed producers, or maybe LPs. Nonetheless, analyst Pablo Zuanic reveals Canadian LPs as Aphria may have “positive collateral benefits” from the U.S. election, assuming Joe Biden takes over the White House. Federal legalization may still be a minimum of 2 years away, but decriminalization of adult-use marijuana and potential federal rescheduling of cannabis can increase Aphria as well as 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 inventory.
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 other Canadian LPs. Nonetheless, Hifyre cannabis sales information for October suggest OrganiGram sales were down 25 % month over month in contrast to a 5 % decline for the complete Canadian retail market. OrganiGram has disappointed investors with its sluggish revenue growth as well as money burn, but Zuanic is actually optimistic the business will see the way of its to earnings 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 second quarter, Cresco beat consensus analyst sales estimates by 30 % and exceeded the earnings of theirs before amortization expectations, depreciation, taxes, and interest by almost 200 %. Zuanic tells you Cresco’s 42 % sequential sales advancement in the next quarter was the most effective growth rates with all of Cresco’s big MSO peers. Zuanic says the Illinois industry will be a major near term growth driver for Cresco, and the Origin House acquisition of its should supplement the natural growth of its. Cantor Fitzgerald has an “overweight” rating and $16 price target for CRLBF stock.
Curaleaf is 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 which legalized recreational marijuana on Election Day. Not simply will Curaleaf gain from the brand new Jersey sector, but Zuanic says Curaleaf will probably draw clients from neighboring Pennsylvania and New York. Curaleaf noted impressive 142 % revenue growth and 180 % disgusting earnings growth 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 inventory.
Green Thumb Industries (GTBIF)
Green Thumb Industries is a U.S. MSO that runs in 12 states, including California and Florida. Zuanic reveals Green Thumb has the best risk profile of Cantor’s top rated MSOs. Green Thumb has expanded the footprint of its in Illinois and Pennsylvania without overextending its balance sheet, it already 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. Additionally, he anticipates additional legalization of 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 inventory.
Trulieve Cannabis Corp. (TCNNF)
Trulieve Cannabis is an MSO that operates largely in Florida. Zuanic recently hosted a call with Trulieve CEO Kim Rivers. After talking with Rivers, Zuanic says he is confident in Trulieve’s capacity to keep a dominant market share of the high growth Florida medical marijuana market. Additionally, Zuanic affirms Trulieve has a substantial alternative to produce the businesses of its in other states, like Connecticut, Massachusetts, and California. Finally, he is upbeat Florida voters might legalize recreational marijuana in the 2022 midterm election. Cantor Fitzgerald has an “overweight” rating and sixty dolars cost target for TCNNF inventory.
GW Pharmaceuticals (GWPH)
Unlike the other cannabis stocks on this list, GW Pharmaceuticals is actually a biopharmaceutical business centered on creating cannabis-based drug treatments. The company’s lead drug Epidiolex has been approved by the Food and 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 with the tail end of 2021, including further penetration into adult people and additional rollout in Europe. Cantor has an “overweight” rating and $165 cost target for GWPH stock.