5 Pot Stocks Wall Street Believes Will Double

Whether you realize it or not, the cannabis industry had an incredible year in 2018. You might not think this was the case given the underperformance of many brand-name pot stocks, but the industry itself gained validation in a big way after Canada ended nine decades of recreational marijuana prohibition in October.

With cannabis now legal in Canada and a growing number of U.S. states and countries around the globe, attention now turns to just how big the global weed market could be. A new analysis from Arcview Market Research and BDS Analytics estimates that global cannabis sales will rise 38% in 2019 to $16.9 billion. That’s a lot of money — and Wall Street knows it…

Wall Street is exceptionally bullish on these five marijuana stocks

After running a screen on more than three dozen pot stocks, Wall Street expects all but two to head higher, as is indicated by a higher consensus price target than the current share price for these stocks. However, five pot stocks really stand out given that Wall Street’s consensus price target is, at minimum, double their current share price. Here are those five marijuana stocks, listed in ascending order.

Emerald Health Therapeutics: Consensus target price 109% higher

British Columbia-based Emerald Health Therapeutics (NASDAQOTH:EMHTF) is one grower that appears to have the fancy of Wall Street. Having formed a joint venture with Village Farms International known as Pure Sunfarms, the duo is retrofitting approximately 1.1 million square feet of vegetable-growing facilities for cannabis production. At full capacity, this facility should yield 75,000 kilograms a year. Combined with Emerald Health’s Metro Vancouver facility and its purchase of Agro-Biotech, it could top 100,000 kilograms of peak annual output.

In particular, Wall Street might like the potential for Pure Sunfarms to expand its existing capacity. There’s about 3.7 million square feet of adjacent land that the joint venture could utilize for expansion purposes.

Of course, Pure Sunfarms also has among the lowest output-to-square-footage yields among large growers, and it’s yet to generate any substantive amount of sales. Legalization should change that, but this investor isn’t sold on…

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