The cannabis industry continues to catch the attention of institutional investors in the United States. Earlier this week, Seaport Global, released a lengthy report analyzing the global cannabis market and initiating coverage on over a dozen of the industry’s leading cannabis firms.
With offices in both New Orleans and New York, Seaport Global is a full-service investment bank that offers capital markets advisory and research services.
“We are formally launching coverage of the global cannabis space. This exciting market area is evolving quickly, with hundreds of public companies coming to market in recent years. There is clear momentum behind the legalization of cannabis, around the world. We expect many countries, including the US, to go legal within the next handful of years, and we think that this will create a considerable forward opportunity for the burgeoning industry that is regulated, legal cannabis,” reads the report. “From a little over $12B in global value today, we see the market ultimately evolving to almost $630B in due time.”
Looking forward, the report projects that the cannabis market will diverge into two distinct markets, a retail dispensary model centered around the adult use market and a medicinal model offered through traditional channels.
Seaport is initiating coverage on Canopy Growth Corp. (NYSE: CGC), Tilray (NASDAQ: TLRY), and Aurora Cannabis (TSX: ACB) with a neutral rating. Curaleaf Holdings (CSE: CURA), Green Thumb Industries (OTC: GTBIF), iAnthus Capital (OTC: ITHUF), KushCo Holdings (OTC: KSHB), and MedMen Enterprises (OTCL MMNFF) were given Buy ratings. Seaport’s top picks were Hexo Corp. (NYSE: HEXO), Aphria Inc. (NYSE: APHA), Acreage Holdings (OTC: ACRGF), and Green Organic Dutchman (OTC: TGODF).
In addition to initiating coverage on the leading cannabis companies, the report also provides an in-depth analysis of the global cannabis market; including market size, legal status, a supply chain diagnostic, regulatory information, projected market size for 106 countries, and an examination of the market dynamics between the U.S. and Canadian market.
The report also provides a 50-state profile which includes political and regulatory information, a breakdown between the medical and adult use market, weekly spot margin calculations, an examination of the hemp-CBD market, and a segmented rundown of over 100 public cannabis companies.
The 208-page report is available online to clients of Seaport Global.