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Wall Street maintained positive outlook on imminent DBC boom, Canaccord Genuity's Bobby Burleson retaining "Speculative Buy" rating on 1933 Industries (OTCMKTS: TGIFF) after announcement that the company's products are now in 46 states . Under their subsidiary Infused MFG, 1933 Industries is now present in 600 stores across the country.
In a recent note, Burleson maintained a C $ 0.70 price target on the cross-border company, saying it was "well-positioned" to take advantage of the recent signing of the agricultural bill that legalized hemp to US states. -United.
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"With the adoption of the bill, mass market retailers are expected to begin distributing hemp CBD products as of the end of the year," writes Burleson in his note, which was sent to investors at the end of last week. "We consider CBD made from hemp as one of the most promising [quasi] Cannabis use products in terms of organic growth potential and the interest of external players seeking to inject growth into their traditional wellbeing portfolios. "
1933 Industries is big on the CBD these days
The Infused MFG product line is primarily concentrated in Western stores, and the company has focused on a variety of stores in California, Nevada, Arizona and Colorado. Nevertheless, the company also distributes throughout the country, as well as online chain sales.
"Our distribution is key to our growth strategy and success because it ensures that our brand image and our messages are properly disseminated," said Chris Rebentisch, chief operating officer of the US-based company. United. "Our operational expertise and excellence have enabled Nevada's manufacturing, distribution and compliance."
According to Burleson, 1933 is on the verge of significantly increasing its production in 2019, with a bloom of 600 pounds to 750 pounds a month and a quadrupling of 50 to 200 pounds, also on a monthly basis.
In addition, CBD now accounts for half of 1933 revenues, with Canaccord forecasting an increase over time.
According to 1933 Industries, CBD production is expected to increase tenfold in the near future. In a statement released last month, the company announced plans to increase cannabidiol production to 2,000 kg per month, an increase of 200 kg per month. Local authorities have already approved zoning to help 1933 move the project forward.
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As Burleson's note shows, the agricultural bill has led to an overabundance of the hemp industry in recent months, as companies look to take advantage of what could be $ 5.7 billion by 2020, according to the report. the latest report from New Frontier Data.
More recently, Canopy Growth Corp. (TSX Venture: WEED) (NYSE: CGC), the darling of the cannabis industry, has invested nearly $ 150 million in hemp production operations in New York State in hopes to produce a high margin CBD in the United States.
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