Another firm is pounding the table on U.S. marijuana stocks rather than their Canadian counterparts.
In an detailed report pegged as a back-to-school lesson on so-called multi-state operators, a team of analysts at Canaccord Genuity suggested investors should give U.S. pot stocks another look.
They recommend three top picks: Curaleaf Holdings (CURLF); Cresco Labs (CRLBF); and Harvest Health & Recreation (HRVSF). These American pot stocks trade at a significant discount to shares of growers in Canada, the team notes.
That’s because American growers, known as multi-state operators, or MSOs, have set up shop in places where marijuana is only legal at the state level. Because it’s still a federally illegal drug, they can’t list on senior U.S. exchanges such as the New York Stock Exchange or Nasdaq. U.S.-based growers generally list on the Canadian Securities Exchange in Toronto and the OTC Markets Group in the U.S.
That’s left the door open for Canadian growers to take investments from major U.S. companies.
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In the case of Canopy, that’s led to increased pressure as the company’s losses continued to mount. Canopy co-founder Bruce Linton was removed as co-CEO in July after the company reported a larger than expected loss.
“As MSOs on average have access to a greater population base than in Canada, are able to operate more favourable vertically integrated operations in many states, and are closer to achieving (or have achieved) profitability compared to most Canadian LPs, we believe this valuation gap will eventually close,” the Canaccord analysts wrote.
They noted that adding up only currently legal markets and segments, including both recreational and medical marijuana, they estimate the total addressable market for legalized areas at maturity is nearing $40 billion. When and if the U.S. legalizes across the board, they estimate this opportunity grows to between $75 billion and $100 billion.
“Although the U.S. cannabis opportunity is still in a nascent stage that spans a relatively disaggregated landscape, we believe a number of U.S. MSOs have secured a strong first-mover advantage at the national level and are beginning to compete for meaningful market share in more than a dozen markets in the U.S.,” the Canaccord team wrote.
They also noted mergers and acquisitions that are awaiting Department of Justice approval. That’s been a headwind for U.S. stocks such as Curaleaf, though the analysts expect such deals to be approved, giving U.S. pot stocks a boost.
They expect a “banner 2020 at the macro level with recreational markets such as California, Illinois and Massachusetts expected to contribute significantly to overall industry growth.”
The team at Canaccord aren’t the only bulls on U.S. pot stocks. In June, a team at Compass Point Research & Trading recommended Curaleaf and Green Thumb Industries rather than Tilray and Canopy. GMP Securities’ Rob Fagan echoed this sentiment in an interview with Barron’s last month.
他们推荐三个顶级精选：Curaleaf（curlf）、Cresco Labs（crlbf）和Harvest Health & Recreation（hrvsf）。研究小组指出，这些美国大麻库存的交易价格与加拿大种植者的股票相比有很大的折扣。
Canaccord的团队并不是唯一看涨美国股市的人。今年6月，Compass Point Research&Trading的一个团队推荐了Curaleaf和Green Thumb Industries，而不是Tilray和Canopy。gmp证券（gmp securities）的罗布•法根（rob fagan）上月接受巴伦（barron）采访时也表达了同样的观点。