Shares of marijuana stocks have been booming in the last week and could continue to see big gains from midterm elections.
According to Cowen analyst Vivien Azer, the marijuana arena may benefit regardless of the winning political party.
She said, “Few industries are better positioned than cannabis regardless of outcome.”
Cowen’s Washington Research Group has explored potential outcomes for November and deduced that no matter who wins the political party, it would still “deliver incremental catalysts.”
“Few industries are better positioned than cannabis regardless of outcome,” Azer wrote in a note to clients.
“Generally speaking, the higher the Blue Wave, the better for the budding industry though even a potential Red Wave is likely to feature pockets of good news.”
Canadian marijuana producer Tilray has been exploding all week and has seen gains of over 400% in the past month. Shares of Canopy Growth and GW Pharmaceuticals have also been climbing higher. Cowen has a $62 price target and a “Buy” rating on Tilray.
