Top 5 Cannabis Stocks Recommended by Wall Street’s Leading Cannabis Analyst

Vivien Azer of Cowen & Co. is recognized as Wall Street’s pioneering cannabis analyst, having initiated coverage well before Canada legalized recreational marijuana. Since then, numerous cannabis companies have delivered exceptional returns, with their shares actively traded on the New York and Nasdaq stock exchanges. Azer identifies key stocks with significant growth potential as cannabis legalization expands globally. She envisions cannabis becoming a conventional consumer staples sector, highlighting the increasing acceptance of legal cannabis worldwide.

Her top stock picks include Aurora Cannabis Inc. (ACB), Canopy Growth Corp. (CGC), and Tilray Inc. (TLRY). Additionally, she recommends major conglomerates like Constellation Brands Inc. (STZ) and Altria Group Inc. (MO), which hold substantial cannabis investments, offering indirect exposure to the industry’s growth.

5 Cannabis Stocks to Watch:

• Aurora Cannabis Inc. (ACB)
• Canopy Growth Corp. (CGC)
• Tilray Inc. (TLRY)
• Constellation Brands Inc. (STZ)
• Altria Group (MO)

Source: Cowen & Co., as reported by Barron’s

Cannabis as a Mainstream Consumer Staple

In September 2016, Azer and her team at Cowen released the first detailed cannabis market report, marking a milestone as the sole major Wall Street firm covering this sector. She projects that by 2030, U.S. legal and illicit cannabis sales could reach $80 billion annually. In Canada, sales are expected to hit 12 billion Canadian dollars by 2025. Globally, in 43 countries progressing toward legalization, the market could expand to $31 billion by 2025.

Capitalizing on First-Mover Advantage

Canadian cannabis companies with international reach benefit from early market entry, access to capital, and licensing advantages. Aurora stands out for its vast scale and approaching profitability, with positive EBITDA anticipated by mid-year. Canopy Growth commands a 30% share of the adult-use market, backed by its scale, innovation, and logistics, despite facing EBITDA challenges.

Tilray commands a premium valuation due to strategic partnerships with Fortune 500 companies like Anheuser-Busch InBev and Novartis, reinforcing its market position.

The expansion of Canadian cannabis leaders also benefits major tobacco and alcohol firms invested in the sector. Constellation Brands holds a 38% stake in Canopy Growth with an option for majority control, offering significant international exposure. Similarly, Altria Group owns 45% of Cronos Group, with the option to increase to 55%.

Looking Ahead

Despite federal restrictions in the U.S., legislative progress such as the anticipated Safe Banking Act could soon enable cannabis businesses to access traditional banking services, removing a major hurdle for industry growth. This development is expected to further accelerate the cannabis market’s expansion.

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