The U.S.-listed shares of Curaleaf Holdings Inc. (OTC:CURLF) (CNQ:CA:CURA) surged 4.5% in morning trading Thursday, to buck the weakness in the broader cannabis market, after MKM Partners analyst Bill Kirk turned bullish, saying the Massachusetts-based medical marijuana company is "poised to inflect operationally at the same time that legislative opportunities may come to fruition." Kirk raised his rating to buy, after being at neutral since November, while raising his price target on the Canada-listed stock to C$14 from C$10. "While Senate and Presidential polling momentum continues in favor of pro-cannabis candidates, Curaleaf has strong exposure to even more salient state-specific legislation (recreational cannabis ballot initiatives in New Jersey and Arizona)," Kirk wrote in a note to clients. "In addition to legislative changes that could dramatically increase Curaleaf's addressable market, increased production capacity in Florida should meet existing demand and double sales in their biggest state." The stock's rally comes while the ETFMG Alternative Harvest ETF (PSE:MJ) falls 0.9% in morning trading. Year to date, Curaleaf's stock has rallied 42.3%, while the MJ ETF has dropped 37.7% and the S&P 500 (S&P:SPX) has edged up 1.7%.
Oct. 29, 2020, 10:04 a.m. EDT