On the heels of President Joe Biden’s Thursday Notice To excuse any federal convictions for marijuana possession, cannabis stocks soared.
additionally president pushed the Department of Justice and the Department of Health and Human Services to review the status of marijuana under federal law.
Cresco Labs Inc. CL CRLBF was among the stocks soaring with a surge of over 41%.
Cantor Fitzgerald analyst Pablo Zuanic updated the company’s share count following the positive reform news.
The Analyst
Zuanic retained an overweight Rating the company’s stock while maintaining its 2-month price target of $15.
The thesis
As Biden’s move was viewed as “great” by many cannabis advocates and industry figures, the analyst shared his take on the performance of cannabis stocks.
“We believe fundamentals will have little impact on cannabis stock performance over the coming weeks — especially if Congress passes SAFE Plus, including safe harbor language that would push the U.S. stock market to list U.S. cannabis companies.” going public,” said Zuanic.
As for Cresco, The stock remains among the analyst’s top 4 picks in the MSO group given its recreational option with a presence in several eastern states expected to see policy reform in the coming years.
Zuanic sees a “magnification” from the limbo acquisition by Columbia Care Inc CCHWFwhich is expected to close in the fourth quarter of 2022.
Additionally, The analyst lowered his estimates to reflect third-quarter market data as well as a possible sequential 5-10% decline in the company’s quarterly revenue signaled by management during its second-quarter earnings call in August.
CRLBF Price Action
Crescos Shares traded 0.43% higher at $3.31 per share at the time of writing on Friday afternoon.
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