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 procedures on the ballot have passed. Recreational 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, potentially limiting considerable federal cannabis reform. To be a result, a few cannabis stocks initially dropped following the election. Allow me to share the very best cannabis stocks to purchase following the election, based on Cantor Fitzgerald.
Flower priced depreciation has long been a major issue for just about all Canadian licensed producers, or maybe LPs. Nonetheless, analyst Pablo Zuanic reveals Canadian LPs like Aphria could 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 two years away, but decriminalization of adult-use marijuana and potential federal rescheduling of cannabis could raise Aphria along with other Canadian LPs, Zuanic says. He states Aphria has a number of positive catalysts in front in the near term, including an increase 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 says OrganiGram’s retail sales trends in the third quarter were fairly strong in contrast to various other Canadian LPs. Nevertheless, Hifyre cannabis sales information for October recommend OrganiGram sales were down twenty five % month over month compared with a 5 % decline for the complete Canadian retail store. OrganiGram has disappointed investors with its sluggish revenue growth and money burn, but Zuanic is hopeful the business will find its way to earnings 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 next quarter, Cresco beat consensus analyst sales estimates by 30 % and exceeded their earnings before interest, taxes, depreciation and amortization expectations by about 200 %. Zuanic affirms Cresco’s forty two % sequential sales growth in the second quarter was the very best growth rate with almost 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 the Origin House acquisition of its should supplement the natural growth of its. Cantor Fitzgerald has an “overweight” rating and sixteen dolars cost target for CRLBF stock.
Curaleaf is actually a U.S. MSO that runs in twenty three states. One of those states is New Jersey, which may represent the largest opportunity with the states which legalized recreational marijuana on Election Day. Not only will Curaleaf gain from the new Jersey market, 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 second 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 operates in twelve states, like Florida and California. Zuanic claims 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 currently has a sizable presence in New Jersey and Zuanic is actually projecting revenue will develop from $527 million in 2020 to $982 million by 2022. Additionally, he anticipates further legalization of Pennsylvania, New York, Connecticut as well as Maryland in coming years. Cantor Fitzgerald has an “overweight” rating and $29 cost target for GTBIF inventory.
Trulieve Cannabis Corp. (TCNNF)
Trulieve Cannabis is actually an MSO that runs largely in Florida. Zuanic recently hosted a call with Trulieve CEO Kim Rivers. After speaking with Rivers, Zuanic says he is comfortable in Trulieve’s ability to maintain a dominant market share of the high growth Florida medical marijuana industry. In addition, Zuanic affirms Trulieve includes a significant chance to produce its businesses in some other states, including Connecticut, Massachusetts, and California. Finally, he’s optimistic Florida voters might 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)
In contrast to the other cannabis stocks on this list, GW Pharmaceuticals is a biopharmaceutical company centered on developing 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 states GW’s third-quarter Epidiolex sales exceeded the expectations of his. Also, he sees assorted bullish catalysts for GW through the end of 2021, which includes further penetration into adult patients and additional rollout in Europe. Cantor has an “overweight” rating and $165 cost target for GWPH stock.