Canopy Growth Corp (CGC), CURALEAF HLDGS INC by Curaleaf Hldgs Inc. (CURLF), JUSHI HLDGS INC CL B by Jushi Holdings Inc. (JUSHF) – Analyst Initiates C…

Cannabis stocks have been on fire since the November election, and one Wall Street analyst expanded his coverage of the US multi-state operator group on Friday by initiating coverage of three new stocks.

The Analyst: Cantor Fitzgerald’s Pablo Zuanic initiated coverage on the following companies:

The Thesis: It is very difficult to analyze and value MSOs because of their OTC listings, their unreliable share count data and the wide range of state-by-state cannabis market conditions, Zuanic says.

Given cannabis is still illegal in the U.S. on a federal level, interstate trade is illegal and each state operates under its own set of laws and restrictions. That situation creates significant risks for many MSOs in the event of federal legalization, he added.

“Depending on the scope of reform, those changes could also force the incumbent MSOs to compete for assets in a quickly consolidating industry with the well-funded Canadian cannabis companies as well as the larger corporations from the non-THC world (US and non-US), likely better funded and with access to much lower cost of capital,” Zuanic said.

For now, Zuanic says he is most bullish on MSOs that have strong balance sheets and operate in states with favorable cannabis economics.

His preferred stock among his three new initiations is TerrAscend due to its large presence in Pennsylvania and…

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Cannabis stocks have been on fire since the November election, and one Wall Street analyst expanded his coverage of the US multi-state operator group on Friday by initiating coverage of three new stocks.

The Analyst: Cantor Fitzgerald’s Pablo Zuanic initiated coverage on the following companies:

The Thesis: It is very difficult to analyze and value MSOs because of their OTC listings, their unreliable share count data and the wide range of state-by-state cannabis market conditions, Zuanic says.

Given cannabis is still illegal in the U.S. on a federal level, interstate trade is illegal and each state operates under its own set of laws and restrictions. That situation creates significant risks for many MSOs in the event of federal legalization, he added.

“Depending on the scope of reform, those changes could also force the incumbent MSOs to compete for assets in a quickly consolidating industry with the well-funded Canadian cannabis companies as well as the larger corporations from the non-THC world (US and non-US), likely better funded and with access to much lower cost of capital,” Zuanic said.

For now, Zuanic says he is most bullish on MSOs that have strong balance sheets and operate in states with favorable cannabis economics.

His preferred stock among his three new initiations is TerrAscend due to its large presence in Pennsylvania and…

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