The share price of at least three marijuana-related companies are reportedly poised to soar in the next year as it should get easier to buy legal marijuana in 2019.
Cowen analyst Vivien Azer, in her annual outlook, said companies like Canopy Growth (CGC) and Tilray (TLRY) should be able to overcome the supply problems that hobbled them in the fall when recreational pot use became legal in Canada, Barron’s reported.
Azer also predicted that packaging supplier KushCo Holdings (KSHB) will grow by triple digits, as marijuana demand grows in U.S. states like California, Nevada, and Massachusetts, Barron’s said.
Azer also reiterated her “outperform” ratings on the shares of Canopy Growth, Tilray, and KushCo.
“Increasing cannabis use seems to be coming at the expense of beer sales, she said in her report. By 2030, Azer forecasts, cannabis sales in the U.S. will grow to $80 billion. That’s compared to about $50 billion today, both legal and illegal,” Barron’s cited her as saying.
Investing in marijuana seemingly is becoming more mainstream, with household names apparently jumping on the financial bandwagon.
To be sure, Hall of Fame quarterback Joe Montana, looking to hit pay dirt in the legal marijuana industry, is part of a $75 million investment in a pot operator, it was announced Thursday.
San Jose, California-based Caliva said it will use the investment to grow a company that includes a farm, a retail store, distribution center and a delivery service. It also distributes its branded products in dozens of other retail outlets in the state, the Associated Press reported.
The former San Francisco 49ers star said his venture capital firm was investing in an industry he believes “can provide relief to many people and can make a serious impact on opioid use or addiction.” Some doctors recommend marijuana to treat opioid addiction and as an alternate relief for pain.
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