g. brand-new brick-and-mortar stores, e-commerce growth), lower legal market prices, and the introducing of brand-new cannabis-derived items unavailable to the illicit market," Gomes stated. Recreational cannabis sales are forecasted to account for just over half the revenue mix for the Canadian cannabis market at $3. 9 billion in 2021, however with more acceptance and the progressive obliteration of the illegal market, Gomes forecasts recreational sales to account for 90.
On the other hand, medical marijuana sales stay consistent throughout the years at around $600 million annually. Gomes pays specific attention to companies in referencing the significance of the market on licensed manufacturers and sellers: Toronto-based independent seller Fire and Flower (Fire and Flower Stock Quote, Chart, News TSX: FAF) and Calgary-based manufacturer High Tide Inc.
In his December 14 analysis corresponding with the company's third quarter financial results being released, Gomes saw Fire and Flower in a favorable light with an "Outperform" ranking, coupled with a target price of $15/share and a projected one-year return of 158 per cent at the time of his most current upgrade on the business (December 14).
"We see FAF as one of the long-lasting winners in the Canadian retail space due to their collaboration with Alimentation Couche-Tard, digital capabilities, and strong capital position," Gomes stated. On the other hand, in his October 20 analysis, Gomes kept in mind that High Tide had pivoted its Canna Cabana shops to a discount club retail model, a move intended to allow High Tide to take on other Canadian value brands.
Gomes offered HITI an "Outperform" rating in his October 20 report and $13. 25 target for a predicted return at the time of 79 percent. "For LPs, our thesis is that the Canadian market uses a big benefit to the evaluations of mid- and small-caps that execute well," Gomes said.
Begin the New Year With Schaeffer's 7 FREE 2022 Stock Picks!
There is a load of uncertainty in the investing world today. First, new COVID-19 strains have become an ever-present threat to the entire economy. Second, Read More Here are still dealing with supply chain concerns. Finally, analysts anticipate interest rates to rise at any minute. Nevertheless, regardless of all of this turmoil, a few companies have begun the season off strong.
Let's analyze a few of these leading trending stocks and see why investors are delighted about them.
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