US election results could spark regulatory changes for cannabis sector - Piper Sandler

Cresco Labs

03/11/2020 18:57

** Brokerage Piper Sandler says U.S. election results could
spark meaningful regulatory changes for the cannabis sector, but
companies look positioned to benefit "very unevenly"
    ** "We do not expect any changes overnight, but we believe
Democratic control of the Senate could open a pathway for
ongoing marijuana legislation and regulatory changes" -
Brokerage
    ** Piper adds such favorable regulatory changes could ease
operating headwinds, drive growth, and lift valuations of pot
stocks
    ** Brokerage says Democrats' plans to decriminalize
marijuana at federal level and legalize it for medical use, as
outlined by party's VP pick Kamala Harris, could allow Canadian
licensed producers (LPs) to enter U.S. market  urn:newsml:reuters.com:*:nL1N2H61C2
    ** Expanding in a new market can take time and money, and
Canadian LPs would still need to secure licenses to operate in
each state - Piper
    ** Brokerage says Canopy Growth Corp  WEED.TO  looks best
positioned for quick U.S. gains, but others such as Aurora
Cannabis Inc  ACB.TO  likely need more time to build up a market
presence
    ** Favourable regulatory changes would benefit U.S.
operators such as Green Thumb Industries Inc  GTII.CD  and
Cresco Labs Inc  CL.CD  the most, adds Piper, as they already
have strong positions in limited license markets

 (Reporting by Shruti Sonal in Bengaluru)
 ((Shruti.Sonal@thomsonreuters.com; Twitter: @shrutisonal26))