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Top Cannabis Analysts Explain Why They Are Bulging on These Two Shares
Joe Biden was inaugurated as the 46th president, just two weeks after the Democrats closed control of the Senate with the victories in both senatorial elections in Georgia. These events give the Dems control of both the Congress Houses and the White House. Although their margins in Congress are narrow – the smallest possible in the Senate, where new Vice President Kamala Harris will have to cast a casting vote in a 50-50 chamber – Democrats do have the necessary votes to pass their legislative agenda by pressing. And part of the agenda is the federal legislation on cannabis. Do not expect this to happen right away, because Congress and President Biden will first have many other priorities to deal with. But New York Gov. Andrew Cuomo, a leading Democrat on the progressive wing, has promised state-level legalization in the state – and like California, New York tends to be a trendsetter. In addition, Biden named Federal Judge Merrick Garland as his choice to head the Department of Justice; Garland is generally regarded as centrist, but he has a judicial record from the Federal Reserve to respect legalizations on legal substances. ‘[With] room for equities to move further, we remain clumsy about American cannabis and believe that 2021 will be a crucial year for the industry … We think investors will increasingly benefit from better insight into the company’s specific growth rates and industry statistics to 2021 … We are also looking at a continuation of state-led legalization initiatives, “noted Jesse Pytlak, Cormark Securities. Keeping this in mind, we used the TipRanks database to find two cannabis stocks supported by the best cannabis analysts, These names have received enough support from the analyst community to achieve a Strong Buy consensus rating.Aphria, Inc. (APHA), headquartered in Leamington, Ontario, Aphria is one of Canada’s giants ‘s legal cannabis sector. The company has a market capitalization of more than 4 billion CA, and reported more than $ 160.5 million in the last fiscal quarter, ‘ a profit of 33% on an annual basis. The figure was a record of the company. In December, the company announced a merger and acquisition agreement with rival firm Tilray, a move that would create the world’s largest cannabis company, with a market value of $ 5 billion. In the agreement, all Aphria shareholders will receive 0.8381 shares of Tilray. The merged entity will hold below the TLRY stock market when the move is completed. Meanwhile, investors can take comfort in Aphria’s share growth. The stock has risen 124% over the past 52 weeks. A significant portion of the profit has occurred in the five weeks since the announcement of the Tilray deal; APHA shares rose 58% during that time. Aphria drew attention to Cantor’s 5-star analyst Pablo Zunaic, who believes the company’s prospects “[all] about what APHA + TLRY can do in a rapid deregulation of cannabis world. Zunaic added: ‘The leading Canadian company (16% APHA rec share plus TLRY 4% share), with an emerging international unit (exports to Israel, Germany, Poland, Malta; production in Germany / Portugal; owned by German distribution), plus additional assets that may be useful depending on the form of future deregulation should earn a premium … ‘In line with these comments, the analyst APHA rates an overweight (ie buy), and its $ 26 price target implies a upward potential of 59% of current levels. (Click here to see Zunaic’s record.) Zunaic is not the only analyst at Aphria. The company has had ten recent reviews and its outline is 8 buy against 2 Holds, which makes the consensus of the analyst a strong buy. However, the recent appreciation of the stock has pushed the trading price above the average price target of $ 15.09; APHA shares are now $ 16.32. (See APHA stock analysis on TipRanks) Trulieve Cannabis (TCNNF) Trulieve is a $ 5.23 billion medical cannabis company operating in California, Connecticut, Florida, Massachusetts, Pennsylvania and West Virginia. The company is headquartered in Florida, the country’s third largest state by population, with a 51% market share in the medical cannabis sector. The rapid growth of medical cannabis has fueled tremendous growth in Trulieve’s share price over the past year. Trulieve shares have actually reached 296% in the last twelve months. Medical cannabis is a lucrative and growing market, and Trulieve’s revenue reflects that. The company reported a steadily rising peak over the past two years, with the most recent quarterly report, 3Q20, with $ 136.3 million, a company record and a 13% quarter-on-quarter profit. Matt McGinley, 5-star analyst at Needham, sums up a bullish case on Trulieve, noting: ‘Although our fundamental outlook for the industry and this company did not change significantly in ’21, the outlook for federal reforms has improved , as well as the outlook for financing that growth based on recent capital market activity. As such, we believe that multiples will rate higher to reflect the high growth rate of the industry more appropriately. It is not surprising that the analyst rates TCNNF as a better performer (ie buy) and sets a price target of $ 60.50, which indicates that the stock will grow ~ 38% over the next 12 months. (To view McGinley’s record, click here.) The Strong Buy analyst’s consensus rating on this stock shows that Wall Street agrees on the value of Trulieve. The rating is based on 6 unanimous Buy reviews. The average price target of $ 49.49 indicates an increase of ~ 13% from the current trading price of $ 43.93. (See Trulieve stock analysis on TipRanks.) To find great ideas for cannabis stocks at attractive valuations, visit TipRanks ‘best-selling stocks, a newly launched tool that combines all the insights of TipRanks’ stocks. Disclaimer: The opinions expressed in this article are solely those of the proposed analysts. The content is for informational purposes only. It is very important to do your own analysis before investing.