The election results are actually bullish for marijuana stocks.
Cannabis stock investors did not get the blue wave they were hoping for in the U.S. election, but all 5 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 maybe MSOs. Unfortunately for cannabis investors, Democrats might 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 very best cannabis stocks to buy following the election, based on Cantor Fitzgerald.
Flower price depreciation has been a significant issue for just about all Canadian licensed producers, or perhaps LPs. Nonetheless, analyst Pablo Zuanic says Canadian LPs like Aphria may have “positive collateral benefits” from the U.S. election, assuming Joe Biden takes more than the White House. Federal legalization may well still be no less than two years away, but decriminalization of adult-use marijuana and potential federal rescheduling of cannabis may boost Aphria along with other Canadian LPs, Zuanic says. He says Aphria has multiple positive catalysts in front in the near term, including a rise of 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 tells you OrganiGram’s retail sales trends in the third quarter were relatively strong compared with various other Canadian LPs. But, Hifyre cannabis sales data for October recommend OrganiGram sales had been down 25 % month over month compared with a 5 % decline for the entire Canadian retail market. OrganiGram has disappointed investors with its sluggish revenue growth as well as money burn, but Zuanic is actually optimistic the small business will see the way of its to growth and profits in the long haul. Cantor Fitzgerald has an “overweight” rating and $4.07 price target for OGI inventory.
While Canadian cannabis stocks are struggling, U.S. multistate operators as Cresco Labs are thriving. In the second quarter, Cresco beat consensus analyst sales estimates by 30 % and exceeded the earnings of theirs before interest, taxes, depreciation and amortization expectations by about 200 %. Zuanic tells you Cresco’s forty two % sequential sales advancement in the next quarter was the most effective growth rate with many of Cresco’s big MSO peers. Zuanic states the Illinois market will be a serious near-term growth driver for Cresco, and the Origin House acquisition of its ought to supplement its natural growth. Cantor Fitzgerald has an “overweight” rating and sixteen dolars price target for CRLBF stock.
Curaleaf is actually a U.S. MSO which runs in twenty three states. Among 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 benefit from the brand new Jersey sector, but Zuanic says Curaleaf will likely draw clients from neighboring New York and Pennsylvania. Curaleaf noted amazing 142 % revenue growth as well as 180 % disgusting profit development 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 actually a U.S. MSO that works in twelve states, like California as well as Florida. Zuanic says Green Thumb has the best 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 mature from $527 million in 2020 to $982 million by 2022. He also anticipates additional legalization in Pennsylvania, New York, Maryland as well as Connecticut in coming years. Cantor Fitzgerald has an “overweight” rating and $29 cost target for GTBIF stock.
Trulieve Cannabis Corp. (TCNNF)
Trulieve Cannabis is actually an MSO that works 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 ability to keep a dominant market share of the high-growth Florida medical marijuana market. Furthermore, Zuanic says Trulieve includes a significant opportunity to grow the businesses of its in some other states, like Connecticut, Massachusetts, and California. Last but not least, 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)
Unlike the other cannabis stocks on this list, GW Pharmaceuticals is actually a biopharmaceutical company centered on creating cannabis based drug therapies. 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. He also sees several bullish catalysts for GW with the conclusion of 2021, which includes further penetration into additional rollout and adult clientele in Europe. Cantor has an “overweight” rating and $165 price target for GWPH stock.