(AYRWF), BlackRock, Inc. (NYSE:BLK) – Why Cannabis MSOs Will ‘Outperform S&P 500’ In 2021Posted by On


Most multistate cannabis operators will outperform the S&P500 in the year ahead, according to Cantor Fitzgerald analyst Pablo Zuanic.

A few standouts in Zuanic’s Thursday note on the space include Ayr Strategies Inc. (OTCQX: AYRWF), Green Thumb Industries Inc. (CSE: GTII) (OTCQX: GTBIF) and Jushi Holdings Inc. (OTCQB: JUSHF).

Ayr Wellness

Ayre, which just rebranded as Ayr Wellness, is Neutral-rated by Cantor Fitzgerald. Zuanic increasd the 12-month price target from $31 to $39. 

Zuanic’s new estimates reflect Cantor’s state-by-state market size assumptions, the analyst said. 

New Jersey will begin recreational sales by January 2022 as opposed to July of this year, as previously thought, he said. 

Outperformance among Ayr and other MSOs is due to the following, Zuanic said: 

  • Better-than-expected earnings
  • Dynamics changing in the companies’ states (going from medicinal to recreational earlier than expected; economics changing due to more licenses issued and/or increased competition)
  • MSO profiles changing (balance of depth vs. breadth; leveraging scale or scale triggering complexity and margin dilution; accretive vs. dilutive M&A).

Green Thumb

Zuanic expects Green Thumb Industries Inc. (CSE:GTII) (OTCQX: GTBIF) sales to climb from $551 million in 2020 to almost $2 billion by 2024 as more states in the company’s portfolio legalize…

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Most multistate cannabis operators will outperform the S&P500 in the year ahead, according to Cantor Fitzgerald analyst Pablo Zuanic.

A few standouts in Zuanic’s Thursday note on the space include Ayr Strategies Inc. (OTCQX: AYRWF), Green Thumb Industries Inc. (CSE: GTII) (OTCQX: GTBIF) and Jushi Holdings Inc. (OTCQB: JUSHF).

Ayr Wellness

Ayre, which just rebranded as Ayr Wellness, is Neutral-rated by Cantor Fitzgerald. Zuanic increasd the 12-month price target from $31 to $39. 

Zuanic’s new estimates reflect Cantor’s state-by-state market size assumptions, the analyst said. 

New Jersey will begin recreational sales by January 2022 as opposed to July of this year, as previously thought, he said. 

Outperformance among Ayr and other MSOs is due to the following, Zuanic said: 

  • Better-than-expected earnings
  • Dynamics changing in the companies’ states (going from medicinal to recreational earlier than expected; economics changing due to more licenses issued and/or increased competition)
  • MSO profiles changing (balance of depth vs. breadth; leveraging scale or scale triggering complexity and margin dilution; accretive vs. dilutive M&A).

Green Thumb

Zuanic expects Green Thumb Industries Inc. (CSE:GTII) (OTCQX: GTBIF) sales to climb from $551 million in 2020 to almost $2 billion by 2024 as more states in the company’s portfolio legalize…



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