The election results are bullish for marijuana stocks.
Cannabis stock investors did not get the blue wave these were hoping for in the U.S. election, but all five 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 MSOs. Unfortunately for cannabis investors, Democrats might not gain control of the Senate, possibly limiting considerable federal cannabis reform. Being a result, some cannabis stocks initially dropped following the election. Here are the very best cannabis stocks to buy following the election, according to Cantor Fitzgerald.
Flower price depreciation has long been a major concern for all Canadian licensed producers, or LPs. Nevertheless, analyst Pablo Zuanic states Canadian LPs as Aphria may have “positive collateral benefits” from the U.S. election, assuming Joe Biden takes more than the White House. Federal legalization may still be at least 2 years away, but decriminalization of adult-use marijuana and potential federal rescheduling of cannabis may increase Aphria and other Canadian LPs, Zuanic states. He says Aphria has multiple positive catalysts forward in the near term, including a rise in exports. Cantor Fitzgerald has an “overweight” rating and $8.95 price target for APHA stock.
Canadian LP OrganiGram has had a brutal year in 2020. Zuanic affirms OrganiGram’s retail sales trends in the third quarter were relatively strong in comparison with various other Canadian LPs. But, Hifyre cannabis sales data for October suggest OrganiGram sales had been down twenty five % month over month in contrast to a five % decline for the complete Canadian retail store. OrganiGram has disappointed investors with the sluggish revenue growth of its as well as money burn up, but Zuanic is actually optimistic the business will find its way to growth and earnings in the long term. Cantor Fitzgerald has an “overweight” rating and $4.07 price target for OGI inventory.
While Canadian cannabis stocks are actually struggling, U.S. multistate operators like Cresco Labs are actually thriving. In the next quarter, Cresco beat consensus analyst sales estimates by thirty % and exceeded their earnings before amortization expectations, depreciation, taxes, and interest by almost 200 %. Zuanic affirms Cresco’s forty two % sequential sales development in the next quarter was the very best growth rates with many of Cresco’s big MSO peers. Zuanic states the Illinois market is going to be a leading near-term growth driver for Cresco, and its Origin House acquisition ought to supplement the organic growth of its. Cantor Fitzgerald has an “overweight” rating and sixteen dolars cost target for CRLBF inventory.
Curaleaf is a U.S. MSO that works in 23 states. One of those states is New Jersey, which might represent the largest opportunity among the states that legalized recreational marijuana on Election Day. Not merely will Curaleaf gain from the new Jersey market, but Zuanic says Curaleaf will probably draw customers from neighboring New York and Pennsylvania. Curaleaf noted astounding 142 % revenue growth as well as 180 % disgusting earnings growth year over year in the next 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 which runs in 12 states, like California as well as Florida. Zuanic claims Green Thumb has the 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 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, Maryland and Connecticut in coming years. Cantor Fitzgerald has an “overweight” rating and $29 price target for GTBIF stock.
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 confident in Trulieve’s ability to keep a dominant market share of the high-growth Florida medical marijuana market. Furthermore, Zuanic says Trulieve includes a significant alternative to produce the businesses of its in some other states, including California, Massachusetts and Connecticut. Finally, he is optimistic Florida voters can legalize recreational marijuana in the 2022 midterm election. Cantor Fitzgerald has an “overweight” rating and $60 cost target for TCNNF inventory.
GW Pharmaceuticals (GWPH)
As opposed to the other cannabis stocks on this list, GW Pharmaceuticals is actually 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 his expectations. Also, he sees assorted bullish catalysts for GW through the end of 2021, which includes further penetration into more rollout and adult patients in Europe. Cantor has an “overweight” rating and $165 cost target for GWPH stock.