Chemdawg marijuana plants grow in a facility in Smiths Falls, Ontario, Canada, October 29, 2019.
Blair Gable | Reuters
Reddit traders had a new target this week: cannabis stocks.
Before returning on Thursday, Tilray shares rallied more than 50% on Wednesday, while Aurora Cannabis rose about 20%. Both stocks collapsed, but remain higher since the beginning of the week.
The WallStreetBets Reddit has shed light on a sector that analysts have been pursuing for some time, describing it as a “great long-term opportunity.”
In a recent note, analysts at Piper Sandler said cannabis could become a $ 115 billion market by 2030, if the legal use of recreation is federally legalized. Even if legalization is not at the US level, the industry’s potential is still “attractive”, reaching $ 50 billion by 2030, the investment bank added. Recreational cannabis use has now been legalized in 15 US states.
Among analysts’ top weed stocks, one in particular was popular with three of the investment firms, while Goldman Sachs noted a company that was “underestimated” by investors.
Here are the best choices for cannabis investment companies.