2024-05-17 18:18:08 ET
Summary
- Cannabis stocks, including SNDL, rallied on news of federal cannabis rescheduling.
- SNDL's SunStream USA structure has been approved by NASDAQ, positioning the company to benefit from the US cannabis market.
- SNDL's Q1-2024 results showed positive growth in segment revenue, margins, and net income.
- I change my rating for SNDL from a Hold to a Buy.
SNDL ( SNDL ) and other cannabis stocks (CGC, GRWG, VFF) rallied on renewed news of federal cannabis rescheduling. The rally was short lived because investors need to unpack the development and see what it implies. On the surface, it seems to be a reiteration of last week’s news of rescheduling. There are a few details to consider.
SNDL has seen a lot of action in the recent cannabis rallies. There is additional news with the company, who just released its Q1-2024 results, worth noting. For instance, the structuring of SNDL’s SunStream USA has been approved by NASDAQ. SNDL is now positioned in a similar way to Canopy Growth (CGC), to benefit from US cannabis markets and soon directly participate....
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SNDL: Federal Government Begins Rescheduling Process For Cannabis (Buy)