Which cannabis stock will surpass the rest?

It is clear that the seeds of future growth have been planted in a burgeoning space of cannabis. According to Grand View Research, the global legal marijuana market is expected to reach $ 66.3 billion by 2025, with many investors hoping to participate.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "That being said, this does not necessarily In the case of cannabis stocks, navigation has been fluid, some have slowed down, with some being weighed down by US tax concerns and supply-side problems, for example, Tilray (TLRY) has fallen 61% since the beginning of the year. "That being said, cannabis inventories have not gone smoothly this year, with problems with US tax and supply, for example, Tilray (TLRY) has fallen 61% since the beginning of the year.

With this in mind, analysts believe that some cannabis stocks seem more ready to fly than others. We wanted to take a closer look at three of the best players in this space to see which stocks of cannabis, according to Wall Street analysts, would win.

Let's dig in it.

<h4 class = "web-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Aurora Cannabis Inc. (CBA) "data-reactid =" 15 "> Aurora Cannabis Inc. (CBA)

While stocks have fallen 31% over the past three months, investors are wondering what's going on with Aurora.

The cannabis society has a long way to go before making a profit. Aurora has not yet released any results for the fourth quarter of 2019, but posted a $ 158.4 million loss in the third quarter. However, management noted that several positive initiatives have put Aurora on a path to profitability.

The company has made considerable efforts to improve the scale of its operations, with Aurora already leading the industry in terms of production capacity. Currently, production is expected to reach 625,000 kilograms of cannabis per year.

Aurora wants to improve this figure by bringing an industrial size to its growing facilities. Management hopes to achieve this through the ramp-up of its Sky and Sun sites. Not to mention that these facilities could lower production costs, as Sky's production costs must be less than US $ 1.00 per gram.

The company will also begin developing new technologies, genetics and intellectual property at two new test facilities to promote sustainable, high quality outdoor production.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Based on the reduction of its operating costs and improved product offerings from its superior facilities, analyst Ladenburg Thalmann & Co .; Glenn Mattson Believes that Aurora has the advantage over its competitors. As a result, he started hedging with a purchase and set a price target of $ 9 on July 17. The four-star analyst thinks the stock price could rise 61% over the next twelve months. "Data-reactid =" 21 "> Based on Glenn Mattson, an analyst at Ladenburg Thalmann & Co., believes that Aurora has the advantage over its competitors, which has allowed it to reduce its costs. operating and enhancing its product offerings through its high-end facilities.The four-star analyst believes that the stock price could increase by 61% over the next twelve months.

Overall, the street is optimistic about ACB. It has a consensus of analysts 'moderate purchase' and an average price target of $ 9, which suggests a potential upside of 56%.

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The next cannabis stock on our list has also been the target of negative media sentiment after announcing a loss of Can $ 1.28 billion in the first quarter of fiscal year 2020, as well as analysts' estimates for income from August 15th.

This is not to say that analysts have abandoned Canopy. Some investors have told investors that they will simply have to be patient.

<p class = "canvas-atom-text-canvas Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "It's important to note that Canopy will benefit from The Market 2.0 or Canada's plan to let cannabis growers add vods, edible products and popular infused beverages that will be legally sold later this year. "Canada's space is about to gain reasonable price, opens its doors at the end of the year, "analyst Seaport Global Brett Hundley "data-reactid =" 34 "> It's important to note that Canopy will benefit from Market 2.0, or Canada's plan to let cannabis growers add vests, edibles and popular infused beverages that will be legally sold later This year, the Canadian space is on the verge of obtaining quite significant pricing power, in our opinion, as the 2.0 market opens up towards the end of this year. " , explained Seaport Global analyst Brett Hundley.

The company has taken several steps forward in its quest for profitability. In an effort to increase its 30% stake in Canada's adult recreational cannabis market, Canopy has made a significant investment in production and retail. The analyst believes that strengthening the brand that led to the launch of its edible products in late fall is a particularly important step in the right direction.

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