|Bid||9.44 x 1400|
|Ask||9.50 x 3000|
|Day's Range||9.42 - 10.61|
|52 Week Range||3.71 - 19.68|
|Beta (5Y Monthly)||3.11|
|PE Ratio (TTM)||45.46|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Marijuana stocks have fallen from their February highs, after greater hopes for U.S. legalization. Does that make any of them good buys now?
Raymond James initiated coverage of Canadian cannabis company Rubicon Organics Inc. with a strong buy rating on Thursday, and said the stock is its "very best micro cap cannabis idea." Analyst Rahul Sarugaser assigned the stock a C$6 price target, that's almost double its current level. Rubicon focuses exclusively on super-premium cannabis and is one of only six licensed producers to offer certified organic cannabis products in Canada, the analyst wrote in a note to clients. "Similar to premium liquor brands affiliated with rarity and prestige-Johnny Walker Blue Label is a favorite example-ROMJ is building distinguished premium brands built on a portfolio of intensely high-quality cannabis products designed to generate the sector's highest gross margins: >50%," said the analyst. Rubicon has its roots in Whistler Medical Marijuana Corp., Canada's first organic-certified LP, which was sold to Aurora Cannabis Corp. . Whistler was co-founded by Rubicon's current Chief Executive Jesse McConnell. "ROMJ's expanding team comprises a full complement of seasoned CPG industry executives, leveraging experience from iconic companies and brands such as Coca-Cola, Pepsi, Diageo, L'Oreal, and Nestle," said the note. Raymond James is expecting the company to capture 25% of the premium/craft cannabis market, equal to about 20% of the total market, based on comparable industries such as beer and liquor. That suggests revenue of $26.5 million in 2021 to $52.5 million in 2022. The U.S.-listed stock was not active premarket, but has gained 69% in the last 12 months, while the Cannabis ETF has gained 98% and the S&P) 500 has gained 22%.
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