3 Cannabis Stocks With Massive Upside Ahead

With estimates forecasting the global cannabis market to reach $66.3 billion by 2025, analysts and investors alike are placing bets on which stocks in this emerging industry are best positioned to reap the biggest rewards from this significant opportunity. While the space is subject to regulatory headwinds and is many years from realizing its full potential, some companies have resonated with analysts as potentially lucrative investment opportunities. Here are three stocks with Moderate Buy consensuses that are expected to dominate in the competitive cannabis landscape…

Is New Age Beverages Stock a Buy with 200% Upside?

New Age Beverages (NBEV) produces and distributes healthy functional beverages that are lauded for being all natural and organic. Adding to their existing line of dietary supplements and ready-to-drink beverages, NBEV is developing a line of CBD-infused beverages. In December, the company announced that it is acquiring Morinda Holdings for a cash-and-stock deal worth $85 million. The deal is highly favorable for the company as it now has access to Morinda’s larger product portfolio and distribution network in 60 countries around the world.

Roth Capital analyst David Bain agrees that the acquisition is beneficial as it will allow NBEV to be global in its CBD launch. Bain’s bullish sentiment is demonstrated through a Buy rating and price target of $11 (200% upside!), which is the highest price goal for the stock among analysts (To watch the analyst’s track record, click here).

Bain noted, “Checks cite a June +48% month-over-month result for Morinda China. We believe the Morinda China’s June result gives visibility for NBEV’s CY19 $320mm revenue guidance (while also boosting 2Q19 results).”

Bain notes that New Age’s 2Q19 gross revenue guidance of ~65mm could prove conservative considering the recent China and Japan Morinda results but feels that maintaining CY19 guidance would serve to bolster NBEV’s current valuation.

With promising synergies from the recent acquisition on the horizon, Bain is not alone in his bullish outlook on NBEV stock. TipRanks analysis of 3 analysts shows a Moderate Buy consensus, with two analysts saying Buy and one recommending Hold in the last three months. The average price target among these analysts stands at $8.33, which represents ~125% increase from current levels. (See NBEV’s price targets and analyst ratings on TipRanks)

Aurora Cannabis Has Plenty of Juice to Rally Higher

Aurora Cannabis (ACB) is the world’s second largest cannabis company by market cap. It is a licensed producer of marijuana in Canada with sales and operations in 23 international countries. ACB’s production profile allows it to…

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