The marijuana industry was rewarded with some big wins on election night, but investors were sellers of the top stocks in the industry. That’s very curious, given that the states that voted for recreational use are situated geographically in very positive and densely populated areas. Adult-use cannabis measures have passed in four states, including New Jersey and Arizona. South Dakota and Mississippi legalized medical cannabis. Uncertainty remains regarding the presidential and Senate races, and that could be the reason sellers had the upper hand, as the final results could have an impact on federal cannabis bills.
We decided to screen our 24/7 Wall St. research universe looking for the top companies in the industry that remain solid buys for patient, aggressive growth investors. These four that look like solid ideas now. It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
Aphria
This company is very close to achieving positive cash flow. Aphria Inc. (NASDAQ: APHA) engages in the production and supply of medical cannabis. It operates through the following segments.
The Cannabis Operations segment produces, distributes and sells both medical and adult-use cannabis. The Distribution Operations segment’s operations are carried out through its wholly owned subsidiaries: ABP, FL Group and CC Pharma. The Business Under Development segment includes operations in which the firm has not received final licensing or has not commenced commercial sales from operations.
Cantor Fitzgerald has a Buy rating with an $11.75 price objective. No Wall Street consensus target was posted, and shares were trading early Wednesday at $4.90 apiece.
Aurora Cannabis
This company has made a string of acquisitions to grow the scale of its overall business. Aurora Cannabis Inc. (NYSE: ACB) produces and distributes medical cannabis products. It is vertically integrated and horizontally diversified across various segments of the cannabis value chain, from facility engineering and design to cannabis breeding, genetics research, production, derivatives, high value-add product development, home cultivation, wholesale and retail distribution.
The company’s products consist of dried cannabis and cannabis oil, CanniMed vegan capsules and hemp products, as well as sells vaporizers, consumable vaporizer accessories and herb mills for using herbal cannabis products. It also operates CanvasRX, a network of cannabis counseling and outreach centers, and it provides cannabis analytical product testing services.
Cantor Fitzgerald’s $7 price target comes with a Neutral rating, and again no consensus target was posted, even though other firms cover the stock. Shares were seen early Wednesday at $4.45.
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