US investment bank Piper Jaffray (NYSE:PJC) has joined the slowly growing list of American brokerages covering cannabis producers, giving major industry players like Canopy Growth (TSX:WEED) a significant boost.
With the support of Piper Jaffray, Canopy jumped 13 percent on Wednesday (January 10), closing the day at C$44.50. Piper Jaffray analyst Michael Lavery gave both Canopy and Tilray (NASDAQ:TLRY) overweight ratings in a note obtained by CNBC, putting his faith in the sector’s future growth.
“We do believe the long-term growth opportunities are significant — both from transitioning illicit trade to legal sales, medical sales, and from transitioning sales in health & wellness categories to CBD-infused products,” Lavery wrote in the note.
“While timing of further changes is difficult to predict, the pace of further legalization appears to be accelerating,” he added.
Despite Lavery’s ranking, Tilray took a stumble on Wednesday and had dropped 3.56 percent by the end of the trading day.
As the cannabis sector continues to pick up speed, having Piper Jaffray watch the space lends further legitimacy to an industry working to shake off its historical stigma.
Until now, most cannabis investors looking for brokerage reports have relied heavily on Vivien Azer of investment bank Cowen (NASDAQ:COWN) and one of the first from a major firm to cover the space.
Azer released her 2019 cannabis outlook last week, projecting that US sales will reach $80 billion by 2030.
According to Lavery, there is currently a total addressable market of $15 to $50 billion between Canada’s recreational and medical market, CBD-infused products in US categories and medical consumption in the European Union. Meanwhile, the long-term global cannabis market is likely worth $250 to $500 billion.
“We expect legal recreational marijuana to source from illicit trade and could attract new users to the category, while THC-infused drinks could source share from alcoholic beverages,” Lavery said.
“Medical cannabis can replace a variety of products (e.g. pain relief, sleep aid, opioid replacement). CBD-infused products (with non-psychoactive properties) could gain share from food, beverage, and personal care categories.”
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Securities Disclosure: I, Olivia Da Silva, 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