In perhaps a sign that incremental progress on federal cannabis reform is afoot, some Wall Street analysts are increasingly coming around on the idea that reform can happen this year. Cantor Fitzgerald analyst Pablo Zuanic, a noted skeptic on SAFE Banking, now believes the legislation has a real chance of passing this year. In a new note to investors, he sees passage thereof as “the wort case scenario”.
The new comments by Pablo signal further affirmation of earlier comments he made in June, stating: “Sen. Schumer may be open to a reasonable and realistic compromise in passing SAFE. From a trading and technical point of view, this could signal the bottom for the group — notwithstanding questions about how much SAFE could really accomplish.”
The SAFE Banking Act, which sponsors have attached as an amendment to a mainline bill called the National Defense Authorization Act (NDAA), will be considered in the must-pass defense appropriations bill this fall. The NDAA’s purpose is authorize appropriations for military activities of the Department of Defense and for military construction, as well as to prescribe military personnel strengths and for various purposes. Annual ratification of the NDAA is a slam dunk in political terms, having passed for fifty-one consecutive years.
The note does come with some notable caveats however. For example, Zuanic does not believe that SAFE Banking as it stands would allow U.S. cannabis companies to directly list their shares on the Nasdaq or the New York Stock Exchange, under current interpretations. This has been a topic of debate for cannabis investors, with prominent participants such as AdvisorShares Pure US Cannabis ETF MSOS Portfolio Manager Dan Ahrens believing that SAFE would allow U.S. exchange listings.
Pablo Zuanic Positive On Green Thumb Industries Going Into Q2 Earnings
Today’s note also highlighted Pablo’s positive view on U.S. cannabis Tier-1 operator Green Thumb Industries Inc.GTBIF as they get set to release second quarter results. The analyst notes that Cantor “like(s) the setup” for Green Thumb based on what it believes will be “2Q sales for the MSO group may be better than expected”.
(Source: News12 New Jersey)
Green Thumb industries was among the original operators licensed in New Jersey for adult-use sales upon commencement in April. A little over two-thirds of Garden State sales should be accretive to the company’s income statement in the current reporting quarter.
The current 14-analyst estimate calls for Green Thumb Industries to generate $248.01 million in revenue, or $0.04c per share. Second quarter financial results are scheduled to be released after the market closes on Wednesday, August 3, 2022.
This article was originally published on The Dales Report and appears here with permission.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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