These six cannabis stocks have Buy ratings

Beacon Securities delivered a Cannabis Industry Plays of the Week report on Monday, with analysts Doug Cooper and Russell saying the technical perspective on the sector is still dim but improving.

Week #1 is in the books and US cannabis stocks had strong returns, with some names up over 20 per cent, including smaller-market companies Planet 13 Holdings (up 48 per cent), Statehouse Holdings (up 35 per cent) and Vibe Growth (up 33 per cent), beating out the bigger multi-state operators (MSOs) like Trulieve Cannabis and Verano Holdings which took losses.

Cooper and Stanley said momentum is still negative in the sector but it’s improving, with 15 out of 21 stocks discussed looking better on a relative strength basis compared to the week before.

“Our favourite chart is Green Thumb Industries, as it is now testing its long-term uptrend. Vext Science and Ascend Wellness are next, as both are rallying with little technical resistance in front of them (see last week’s Planet 13 return for evidence of what can happen when there is technical open air!). Columbia Care is also notable, as a return trip within its broadening formation represents a potential double,” Cooper and Stanley wrote.

By jurisdiction, the analysts noted that Florida’s fourth quarter medical sales growth outperformed year-ago levels, improving its flower sales volumes by 11 per cent sequentially versus a three per cent sequential improvement in Q4 2021. In Minnesota, lawmakers introduced an adult-use legalization bill last week that has better odds of success with the Democratic-Farmer-Labor Party having flipped the Senate in last November’s mid-terms, the analysts reported.

Cooper and Stanley provided ratings on the following six stocks. All target prices are in Canadian dollars except where noted otherwise and all projected returns are as of their report’s publication date on January 9.

Stock: Cansortium (Cansortium Stock Quote, Charts, News, Analysts, Financials CSE:TIUM.U)

Beacon Securities rating: Buy

Beacon target price: $1.00

Projected 12-month return: 614 per cent

Stock: Curaleaf (Curaleaf Stock Quote, Charts, News, Analysts, Financials CSE:CURA)

Beacon Securities rating: Buy

Beacon target price: $12.00

Projected 12-month return: 113 per cent

Stock: Jushi Holdings (Jushi Holdings Stock Quote, Charts, News, Analysts, Financials CSE:JUSH)

Beacon Securities rating: Buy

Beacon target price: $3.50

Projected 12-month return: 257 per cent

Stock: Ayr Wellness (Ayr Wellness Stock Quote, Charts, News, Analysts, Financials CSE:AYR.A)

Beacon Securities rating: Buy

Beacon target price: $22.00

Projected 12-month return: 1,150 per cent

Stock: Lowell Farms (Lowell Farms Stock Quote, Charts, News, Analysts, Financials CSE:LOWL)

Beacon Securities rating: Buy

Beacon target price: $1.50

Projected 12-month return: 1,263 per cent

Stock: Village Farms (Village Farms Stock Quote, Charts, News, Analysts, Financials NASDAQ:VFF)

Beacon Securities rating: Buy

Beacon target price: US$4.50

Projected 12-month return: 215 per cent