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Cannabis Stocks are on a High after Biden Calls for Favorable Reforms

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Cannabis stocks rallied on Thursday after President Joe Biden announced that he will pardon all prior federal offenses related to “simple possession of marijuana.” The president also called for a review of the classification of marijuana as a Schedule 1 substance.

Cannabis stocks rallied on Thursday after U.S. President Joe Biden announced that his administration will pardon thousands of people convicted for “simple possession of marijuana.” The president also urged governors to take similar actions for state offenses. Biden also stated that he is directing the Secretary of Health and Human Services and the Attorney General to review “expeditiously” the classification of marijuana as a Schedule 1 Controlled Substance, a category which includes dangerous substances like heroin and LSD that have a high risk of abuse.

The news of the Biden administration’s favorable reforms led to a notable spike in several cannabis stocks on Thursday. Stocks of U.S. multi-state operators (MSOs) Trulieve (OTC:TCNNF), Curaleaf (OTC:CURLF), Green Thumb (OTC:GTBIF), and Cresco Labs (OTC:CRLBF) jumped 36.0%, 33.1%, 30.3%, and 24.4%, respectively. Meanwhile, the U.S.-listed shares of Canadian cannabis company Tilray (NASDAQ:TLRY) (TSE:TLRY), which is scheduled to announce its fiscal first-quarter earnings today, were up nearly 31%. Shares of its Canadian peer Canopy Growth (NASDAQ:CGC) (TSE:WEED) jumped 22.2%.   

It should be noted that the official statement by the president specified that limitations pertaining to “trafficking, marketing, and underage sales of marijuana” would continue.  

More and more states in the U.S. have legalized cannabis for medical and recreational use in recent times. According to Marijuana Business Daily (MJBizDaily), the medical use of cannabis is legal in 39 states and the District of Columbia, while recreational use has been legalized in 19 states and the District of Columbia. However, cannabis continues to be illegal at the federal level in the U.S. Meanwhile, Canada legalized cannabis in October 2018. The delay in the legalization of cannabis at the federal level has impaired the growth of cannabis companies and has significantly dragged down their stocks.

Let us look at some cannabis stocks that Wall Street analysts are highly bullish about.

Is TCNNF a Buy?

Trulieve is a U.S. multi-state operator with a presence in 11 states, with a leading presence in Arizona, Florida, and Pennsylvania.

Trulieve Cannabis stock scores the Street’s Strong Buy consensus rating based on 10 unanimous Buys. The average TCNNF stock price target of $31.51 implies nearly 163% upside potential from current levels.

What is the Prediction for Curaleaf Stock?

Massachusetts-based Curaleaf has a footprint in 21 states. It also operates 144 dispensaries and 29 cultivation sites. The company is focused on capturing cannabis business in highly populated states, including Arizona, Florida, Illinois, Massachusetts, New Jersey, New York, and Pennsylvania. The company also has a presence in Europe.

On TipRanks, CURLF stock has a Strong Buy rating backed by 10 Buys and one Hold. The average Curaleaf price target of $8.88 implies 44% upside potential.  

Is Green Thumb Industries a Buy or Sell?

Green Thumb is a cannabis consumer packaged goods company that owns several retail brands, including Dogwalkers and RYTHM. It has a presence in 15 U.S. markets and operates 77 retail locations.

The Street’s Strong Buy consensus rating for Green Thumb is based on 11 unanimous Buys. At $23.42, the average GTBIF price target implies 78.1% upside potential from current levels.

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