CA - SNDL Rallies On News Of U.S. Rescheduling Of Cannabis

2024-05-01 02:47:58 ET

Summary

• SNDL Inc. rallied 22% as the DEA recommends rescheduling cannabis from Schedule I to Schedule III.
• The rally may lead to new valuations and price targets for cannabis companies.
• The rescheduling is a positive step, but further legislation and federal legalization are still needed for long-term benefits.
• I rate SNDL as a hold for now and recommend that investors watch for more developments.

SNDL Inc. ( SNDL ) rallied 22% today over news of the DEA supporting the rescheduling of cannabis in the US. The plant will begin a long journey now to become a part of Schedule III substances instead of Schedule I. The news is still being processed by investors and further actions must occur before it is rescheduled. The entire cannabis sector experienced a rally, including Canadian LPs (CGC, TLRY, VFF) and cannabis support stocks (MAPS, GRWG). This rally may lead to new valuations and price targets for cannabis companies....

For further details see: