Stock Markets (Apr 14, 2021 11:01AM ET)© Reuters 3 Cannabis Stocks Wall Street Predicts Will Rally By at Least 25%
The rapid pace of legalization at the state level and meaningful progress on cannabis decriminalization at the federal level make Wall Street optimistic about the upside potential of several fundamentally sound stocks in this space. Three examples of these stocks that analysts believe are well positioned to rally by at least 25% over the next 12 months are: Trulieve Cannabis (OTC:TCNNF), Cresco Labs (OTC:CRLBF), and KushCo Holdings (OTC:KSHB). Read on. Once deemed as illicit, cannabis consumption is now well on its way to the mainstream. More than a dozen states have already legalized marijuana for recreational use. And last month, Gov. Andrew Cuomo signed legislation passed by state lawmakers to legalize recreational marijuana in New York. The legislation will expand New York’s existing medical, adult-use marijuana and cannabinoid hemp programs and formulate licensing for cannabis producers.
The Virginia legislature recently passed a bill to legalize simple possession of marijuana and limited home growth, effective July 1, 2021. This makes it the first state in the South and the 17th state overall to legalize recreational cannabis. Although under federal government guidelines cannabis is still considered a controlled substance. But changing societal attitudes towards it, particularly due to its medicinal benefits, have buttressed the widespread legalization push.
This, along with the advocacy of federal decriminalization by governors of many states, makes Wall Street analysts optimistic about the industry’s prospects. Based on consensus price targets, Trulieve Cannabis Corp. (TCNNF), Cresco Labs Inc. (CRLBF), and KushCo Holdings, Inc. (KSHB) are expected to rally at least 25% over the next 12 months.