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. Fun 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 perhaps MSOs. Unfortunately for cannabis investors, Democrats might not gain control of the Senate, potentially restricting considerable federal cannabis reform. To be a result, some cannabis stocks initially dropped following the election. Allow me to share the very best cannabis stocks to buy following the election, according to Cantor Fitzgerald.
Aphria (ticker: APHA)
Flower priced depreciation has long been an important problem for almost all Canadian licensed producers, or LPs. Nonetheless, analyst Pablo Zuanic says 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 well still be at least 2 years away, but decriminalization of adult use marijuana and potential federal rescheduling of cannabis could boost Aphria as well as other Canadian LPs, Zuanic says. He states Aphria has multiple positive catalysts in front in the near term, including an increase in exports. Cantor Fitzgerald has an “overweight” rating and $8.95 price target for APHA inventory.
OrganiGram Holdings (OGI)
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 in contrast to other Canadian LPs. However, Hifyre cannabis sales data for October suggest OrganiGram sales had been down 25 % month over month compared with a 5 % decline for the overall Canadian retail store. OrganiGram has disappointed investors with its sluggish revenue growth as well as money burn up, but Zuanic is actually hopeful the company may find its way to growth and earnings in the long run. Cantor Fitzgerald has an “overweight” rating and $4.07 cost target for OGI inventory.
Cresco Labs (CRLBF)
While Canadian cannabis stocks are struggling, U.S. multistate operators like Cresco Labs are actually thriving. In the next 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 says Cresco’s forty two % sequential sales advancement in the second quarter was the best growth rates with all of Cresco’s big MSO peers. Zuanic states the Illinois market will be a serious 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 cost target for CRLBF stock.
Curaleaf Holdings (CURLF)
Curaleaf is actually a U.S. MSO which operates in 23 states. One of those states is actually New Jersey, which may represent the largest opportunity among the states that legalized recreational marijuana on Election Day. Not simply will Curaleaf benefit from the brand new Jersey market, but Zuanic says Curaleaf will likely draw customers from neighboring Pennsylvania and New York. Curaleaf reported amazing 142 % revenue growth as well as 180 % gross profit growth 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 runs in twelve states, like Florida and California. Zuanic states 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 already has a sizable presence in New Jersey and Zuanic is actually projecting revenue will grow from $527 million in 2020 to $982 million by 2022. Also, he anticipates additional legalization of Pennsylvania, New York, Connecticut and Maryland in coming years. Cantor Fitzgerald has an “overweight” rating and twenty nine dolars price target for GTBIF stock.
Trulieve Cannabis Corp. (TCNNF)
Trulieve Cannabis is actually an MSO which works primarily in Florida. Zuanic recently hosted a call with Trulieve CEO Kim Rivers. After speaking with Rivers, Zuanic says he is comfortable in Trulieve’s potential to maintain a dominant market share of the high-growth Florida medical marijuana market. Additionally, Zuanic says Trulieve includes a tremendous opportunity to produce its businesses in other states, including California, Massachusetts and Connecticut. Finally, he’s optimistic Florida voters can 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)
Unlike the other cannabis stocks on this list, GW Pharmaceuticals is a biopharmaceutical company focused on developing 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 several bullish catalysts for GW through the conclusion of 2021, including further penetration into adult people and more rollout in Europe. Cantor has an “overweight” rating and $165 price target for GWPH inventory.