The summer is no stranger to market weakness in the cannabis sector, the team at Eight Capital writes in a new report published Thursday, but the sector could show “significant outperformance over the remainder of the year.”
“Between the catalysts ahead in the Canadian market and the potential deregulation in the United States,” the analysts write, “the cannabis trade is not over.”
Below, Cannabis Professional summarizes the most significant potential catalysts that Eight Capital argues could serve as “possible trigger events for a re-rate of the sector” in its 27-page report as well as the investment dealer’s top cannabis stock picks.
Product differentiation as supply equilibrium is reached in 2020
Legal cannabis production will finally be at a level high enough to satisfy demand by the middle of next year, the report predicts. While that would normally bring big margin pressure for LPs, the authors