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 five status marijuana legalization procedures on the ballot have passed. Fun and/or medical marijuana was legalized in Arizona, Mississippi, Montana, new Jersey and South Dakota, increasing the potential geographic footprint of cannabis multistate operators, or maybe MSOs. Unfortunately for cannabis investors, Democrats may not gain control of the Senate, possibly restricting considerable federal cannabis reform. Being a result, a few cannabis stocks initially dropped following the election. Here are the best cannabis stocks to buy following the election, as reported by Cantor Fitzgerald.
Flower priced depreciation has long been a significant problem for all Canadian licensed producers, or perhaps LPs. Nevertheless, analyst Pablo Zuanic states Canadian LPs as Aphria could have “positive collateral benefits” from the U.S. election, assuming Joe Biden takes over the White House. Federal legalization might still be at least two years away, but decriminalization of adult use marijuana and potential federal rescheduling of cannabis may raise Aphria along with other Canadian LPs, Zuanic states. He claims Aphria has multiple positive catalysts ahead in the near term, including a surge in exports. Cantor Fitzgerald has an “overweight” rating and $8.95 cost target for APHA inventory.
Canadian LP OrganiGram has had a brutal year in 2020. Zuanic affirms OrganiGram’s retail sales trends in the third quarter had been relatively strong compared with other Canadian LPs. Nonetheless, Hifyre cannabis sales data for October suggest OrganiGram sales were down 25 % month over month in contrast to a five % decline for the overall Canadian retail market. OrganiGram has disappointed investors with the sluggish revenue growth of its as well as cash burn, but Zuanic is actually hopeful the company may find 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 actually 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 says Cresco’s 42 % sequential sales expansion in the second quarter was the best growth rate with almost all of Cresco’s big MSO peers. Zuanic states the Illinois market will be a major near term growth driver for Cresco, and the Origin House acquisition of its ought to supplement the organic growth of its. Cantor Fitzgerald has an “overweight” rating and $16 price target for CRLBF inventory.
Curaleaf is actually a U.S. MSO which works in twenty three states. Among those states is actually New Jersey, which might represent probably the largest opportunity among the states which legalized recreational marijuana on Election Day. Not merely will Curaleaf gain from the new Jersey sector, but Zuanic says Curaleaf will probably draw customers from neighboring Pennsylvania and New York. Curaleaf noted astounding 142 % revenue growth and 180 % gross profit development year over year in the next quarter and also 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 actually a U.S. MSO which operates in 12 states, including California and Florida. Zuanic reveals Green Thumb has the ideal risk profile of Cantor’s top rated MSOs. Green Thumb has expanded the footprint of its in Pennsylvania and Illinois without overextending the balance sheet of its, it already 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. Also, 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’s confident in Trulieve’s capacity to keep a dominant market share of the high-growth Florida medical marijuana market. Furthermore, Zuanic affirms Trulieve features a tremendous alternative to produce its companies in other states, including Connecticut, Massachusetts, and California. Lastly, he’s optimistic Florida voters might legalize recreational marijuana in the 2022 midterm election. Cantor Fitzgerald has an “overweight” rating and sixty dolars price target for TCNNF inventory.
GW Pharmaceuticals (GWPH)
As opposed to the other cannabis stocks on this list, GW Pharmaceuticals is actually a biopharmaceutical business 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 treatment of pediatric epilepsy. Cantor analyst Charles Duncan states GW’s third-quarter Epidiolex sales exceeded the expectations of his. Also, he sees several bullish catalysts for GW through the conclusion of 2021, including further penetration into adult individuals and more rollout in Europe. Cantor has an “overweight” rating and $165 cost target for GWPH stock.