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Sit Tight And Hang On To Your Cannabis Stocks says Top Analysis

Sit Tight And Hang On To Your Cannabis Stocks, Analyst Talks Momentum & Who Will Come Out On Top

by
Joana Scopel, Benzinga Staff Writer
January 4, 2023 3:50 PM | 2 min read

Cantor Fitzgerald's Pablo Zuanic says the U.S. cannabis industry has great value but is in a tight and defined investable pool.

But there's hope: “We are confident about the regulatory tailwinds pushing the U.S. marijuana industry forward, taking a long-term view,” said Zuanic, however “in the near term, operators face macro pressures, limited funding opportunities, and runaway licensing in some states.”

SAFE Banking Act’s failure to materialize:

Zuanic said that without the SAFE Banking Act and a divided Congress, he is even more confident "of the durability, scalability, and long-term outlook of the larger and better-capitalized U.S. MSOs."

However smaller operators could be excluded and “in some cases, new licensees may not even be able to raise capital to start operations,” Zuanic said in a recent note. “Still, the question of 'investability' (we do not mean fundamentals) remains a concern, with at best a TSX listing (and increased U.S. custody services?) helping in the next 12 months. Increasingly, we believe a rescheduling scenario by 3Q24 (not before) is becoming more likely, but that may delay/entangle other reform efforts in the interim.”

https://www.benzinga.com/analyst-ratings/analyst-color/23/01/30280493/sit-tight-and-hang-on-to-your-cannabis-stocks-analyst-talks-momentum-who-will-come-