Chemdawg marijuana plants grow at a facility in Smiths Falls, Ontario, Canada, October 29, 2019.
Blair Gable | Reuters
Reddit traders had a new target this week: cannabis stocks.
Before falling on Thursday, Tilray’s shares rose more than 50% on Wednesday, while Aurora Cannabis jumped about 20%. Both stocks fell, but have remained higher since the beginning of the week.
Reddit’s WallStreetBets topic illuminated an industry that analysts have been looking at for some time, describing it as a “big long-term opportunity”.
In a recent note, analysts at Piper Sandler said that cannabis could become a $ 115 billion market by 2030 if recreational use is legalized at the federal level. Even though legalization is not across the US, the industry’s potential is still “attractive”, reaching $ 50 billion by 2030, the investment bank added. Recreational cannabis use has already been legalized in 15 U.S. states.
Of the top analysts’ stocks, one in particular was popular with three investment firms, while Goldman Sachs observed a company that was “underestimated” by investors.
Here are the main cannabis options from investment firms.