Cowen’s (NASDAQ:COWN) lead cannabis analyst raises projections for overall sector, adds sales from two Canadian firms will see a “material increase.”
In a new research note according to a report from CNBC, Vivien Azer, managing director and senior research analyst specializing in the beverage, tobacco, and cannabis sectors for Cowen, offered a bullish outlook for the cannabis space through 2019 and beyond.
Azer credits this positive sentiment thanks to the continued advancements in the American cannabis market and the continued growth of the Canadian one.
Azer raised her previous projection of US$75 billion in US cannabis sales by 2030 to US$80 billion.
Despite the initial troubles from legalization in Canada, accompanied by results that have disappointed some observers and investors of the sector, Azer sees 2019 as a big year for Cowen’s Canadian licensed producer (LP) picks.
Through an e-commerce analysis, Azer indicated Canopy currently has an 18 percent leading position among all LPs for available products in the Canadian market.
“We remain confident in Canopy’s ability to generate such vibrant sequential growth based on the company’s seemingly leading share in the market,” she said in her note.
The analyst projects a revenue increase of C$239 million in fiscal 2019 to C$778 million in fiscal 2020.
When it comes to Tilray’s path Azer expects its new partnership with Sandoz, a subsidiary of Novartis (NYSE:NVS,SWX:NOVN) to help in its expansion plans for the international medical cannabis market.
“We continue to view the international medical market as one of the primary investment highlights for Tilray, which currently operates in 12 countries,” Azer wrote.
Both Tilray and Canopy have secured partnerships and investment deals with beverage makers as a way to seek the creation of cannabis infused drinks.
Azer also expressed support for the US cannabidiol market thanks to the passing of a new US$867 billion farm bill that legalizes hemp and its derivatives.
“We expect the category could generate $1.6 billion in revenues over the next year or two, depending on the timing of FDA commentary and the pace of retail acceptance,” Azer wrote.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
As investors continue to prioritize cannabis opportunities in the US, market watchers expect mergers and acquisitions (M&A) to play a role in the future for Canadian companies.
A consolidation trend has been expected in the Canadian cannabis space for some time now based on the size of the market compared to the number of operations in the country.
BioHarvest Sciences Inc. Unveils the Unique Polyphenolic Content of Its Upcoming Olive-Based Nutraceutical
The product will include polyphenols known to have significant health benefits.
BioHarvest Sciences Inc. (CSE: BHSC) (“BioHarvest” or the “Company”) has reached an important milestone in its development program of additional Nutraceuticals. The olive-based Nutraceutical product scheduled for market availability in the second half of 2022 will contain the following unique matrix of polyphenols: hydroxytyrosol, trosol, and verbascoside. These compounds are the major polyphenols in naturally grown olives and are responsible for the high antioxidant activity of olives and olive oil. Importantly, the BioHarvest olive-based Nutraceutical product will provide all the benefits of olives and olive oil with a low calorie count per serving.
Cresco Labs (CSE:CL) (OTCQX:CRLBF) (“Cresco” or the “Company”), one of the largest vertically integrated multistate cannabis operators in the United States, announced today that it will report financial results for the fourth quarter and full year ended December 31 st , 2020 on Thursday March 25 th , 2021 before the market opens.
The Company will host a conference call and webcast to discuss its financial results and provide investors with key business highlights on Thursday March 25 th , 2021 at 8:30am Eastern Time (7:30am Central Time).
Canopy Growth to Participate in BofA Securities Virtual Consumer & Retail Technology Conference on March 11, 2021
Canopy Growth Corporation (TSX: WEED) (NASDAQ: CGC) (“Canopy Growth” or “the Corporation”) announced today that EVP & CFO Mike Lee will be participating in a fireside chat at the BofA Securities Virtual Consumer & Retail Technology Conference on Thursday, March 11, 2021 at 9:30am ET .
Hill Street Beverage Company Inc. (TSXV: BEER) (“Hill Street” or the “Company”). The Company announces that further to its press release dated March 2, 2021, it has obtained TSX Venture Exchange approval to extend the closing date of its previously announced private placement of units (“Units”) until April 7, 2021. Each Unit is comprised of one (1) common share and one (1) warrant, exercisable for one common share at price of $0.11 per share, for a period of three (3) years from the date of Closing. The Company applied to extend the date of closing to allow a greater number of interested investors to participate.
For more information regarding the Company or the offering, please contact email@example.com, or