- Q4 earnings reflected significant macro weakness. Challenges will persist in 1H but we feel concerns over growth outlook for industry are overblown.
- Consolidation continues, and we expect further M&A is coming particularly in the absence of Safe Act catalyst.
- All but biggest MSOs in position to be acquired.
- Believe federal legislation is unlikely this year.
- Stocks of smaller and medium-sized companies outperformed in Q1/22. Expect trend to continue on share gains and consolidation.
- Despite poor overall stock returns, there were multiple big gainers amongst coverage.
- Top picks for near term investment are: Harborside, Jushi, Lowell Farms, Planet 13, Schwazze, Ascend, Glasshouse and Unrivaled.
For further details see:
Key Trends Coming Out Of Q1 2022