Cowen’s (NASDAQ:COWN) lead cannabis analyst raises projections for overall sector, adds sales from two Canadian firms will see a “material increase.”

In a new research note according to a report from CNBC, Vivien Azer, managing director and senior research analyst specializing in the beverage, tobacco, and cannabis sectors for Cowen, offered a bullish outlook for the cannabis space through 2019 and beyond.


Azer credits this positive sentiment thanks to the continued advancements in the American cannabis market and the continued growth of the Canadian one.

 

Cannabis - Will The Fortune 500 Join The Party?

 
Our Exclusive FREE Report Contains Information You NEED To Know About Cannabis Stock Investing!
 

Cowen recommends Canadian firms Canopy Growth (NYSE:CGC,TSX:WEED) and Tilray (NASDAQ:TLRY), alongside ancillary company KushCo Holdings (OTCQB:KSHB).

Azer raised her previous projection of US$75 billion in US cannabis sales by 2030 to US$80 billion.

Despite the initial troubles from legalization in Canada, accompanied by results that have disappointed some observers and investors of the sector, Azer sees 2019 as a big year for Cowen’s Canadian licensed producer (LP) picks.

Through an e-commerce analysis, Azer indicated Canopy currently has an 18 percent leading position among all LPs for available products in the Canadian market.

“We remain confident in Canopy’s ability to generate such vibrant sequential growth based on the company’s seemingly leading share in the market,” she said in her note.

The analyst projects a revenue increase of C$239 million in fiscal 2019 to C$778 million in fiscal 2020.

When it comes to Tilray’s path Azer expects its new partnership with Sandoz, a subsidiary of Novartis (NYSE:NVS,SWX:NOVN) to help in its expansion plans for the international medical cannabis market.

“We continue to view the international medical market as one of the primary investment highlights for Tilray, which currently operates in 12 countries,” Azer wrote.

Both Tilray and Canopy have secured partnerships and investment deals with beverage makers as a way to seek the creation of cannabis infused drinks.

Azer also expressed support for the US cannabidiol market thanks to the passing of a new US$867 billion farm bill that legalizes hemp and its derivatives.

“We expect the category could generate $1.6 billion in revenues over the next year or two, depending on the timing of FDA commentary and the pace of retail acceptance,” Azer wrote.

Don’t forget to follow us @INN_Cannabis for real-time news updates!

Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.

 

Cannabis - Will The Fortune 500 Join The Party?

 
Our Exclusive FREE Report Contains Information You NEED To Know About Cannabis Stock Investing!
 

Cresco Labs (CSE:CL) (OTCQX:CRLBF) (“Cresco Labs” or the “Company”), a vertically integrated multistate operator and the number one U.S. wholesaler of branded cannabis products and Bluma Wellness Inc. (“Bluma Wellness”), a vertically integrated operator in Florida, today announced the closing of the Company’s previously announced acquisition of Bluma Wellness.

Transaction Highlights

Keep reading... Show less

Construction of New Facility Under Way

TransCanna Holdings Inc. (CSE: TCAN) (FSE: TH8) (“TransCanna” or the “Company”) is pleased to announce the appointment of commercial farming and construction expert, Josh Baker, to its Board of Directors today.

Keep reading... Show less

– Virtual Investor Conferences and KCSA Strategic Communications today announced the agenda for the upcoming KCSA Cannabis Industry Virtual lnvestor Conference. Individual investors, institutional investors, advisors and analysts are invited to attend. The program opens at 10:15 AM ET, with the first live webcast at 10:30 AM ET, on Tuesday, April 20 th .

Keep reading... Show less

Launching Digital Sales Platform

Global Wellness Strategies Inc. (CSE: LOAN) (FSE: O3X4) (OTCQB: PNNRD) (formerly Redfund Capital Corp.) (“Global” or the “Company”) announces KaleidoMyco agreement with digital marketing firm The Wolf of Marketing to launch digital sales platform.

Keep reading... Show less

An Emerging Markets Sponsored Commentary

Health and wellness, beverage and natural products company BevCanna Enterprises Inc. (CSE:BEV, Q:BVNNF, FSE:7BC) recently announced that following the appointment of former Pepsi Co. executive, Melise Panetta to President of the organization. it has further bolstered its leadership team with veteran consumer packaged goods (“CPG”) expertise, which is anticipated to deepen and expand BevCanna’s existing sales and distribution network, and accelerate growth.

Keep reading... Show less