Some of the most high-profile cannabis analysts shared their insights in a thrilling discussion about trends, strategies and forecasts at the Virtual Benzinga Cannabis Capital Conference.
Alan Brochstein, the founder of 420 Investor and New Cannabis Ventures, led the discussion.
Cresco, Green Thumb Among Analyst Favorites: Michael Lavery, senior research analyst at Piper Sandler, equated cannabis to other industries where the “winners” are those that enjoy a competitive advantage against their peers.
What’s special about cannabis, as opposed to other consumer packaged goods industries, is that brands alone are not enough to drive pricing power.
In cannabis, scarcity is the golden variable, Lavery said.
Vivien Azer, managing director and senior research analyst at Cowen, agreed on Green Thumb, highlighting prudent management and communication about its business.
“The capital discipline has been exceptional at the company. They’ve really pursued a growth-focused strategy. They have taken very good care with their balance sheets, having raised capital last April before the capital markets got very tight.”
Most importantly, it’s the way Green Thumb communicates with the street in terms of expectation management, said Azer.
The landscape in Canada is less clear for the analysts.
Owen Bennett, a tobacco and cannabis analyst at Jefferies, said he’s amazed at the amount of Canadian licensed producers that “didn’t do the basics right.”
For consumer product goods companies, this means forming segmented …