Stifel said that that potential 280E removal for cannabis is a step forward, but the process isn’t done. The firm noted that the DEA placing cannabis in Schedule III from Schedule I is one of two likely outcomes and the most favorable for U.S. operators given the removal of 280E across the board, which the firm reiterates is more meaningful than SAFE. Given the DEA’s historical hostility toward drug liberalization, Stifel believes this step still presents a risk to the Schedule III determination, and as a result believes shares could sustainably benefit from a valuation re-rating but ultimately will require greater visibility. Publicly traded companies in the space include Aurora Cannabis (ACB), CV Sciences (CVSI), CannTrust Holdings (CNTTF), Canopy Growth (CGC), Cronos Group (CRON), Goodness Growth (GDNSF), Green Thumb Industries (GTBIF), IGC Pharma (IGC), Tilray (TLRY), Trees Corporation (CANN), Trulieve Cannabis (TCNNF) and Zynerba (ZYNE).
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