Cowen and Company, a leading investment bank, issued a bullish Cannabis Industry Research Report.
Cowen and Company released an extensive report on the cannabis industry today, suggesting the recreational market could grow to $50 billion by 2026. While this isn’t the first time that an investment bank has issued research on the industry, the effort was very broad, with ten different analysts weighing in.
Vivien Azer, the lead analyst on the bullish Cannabis Industry Research report, “The Cannabis Compendium: Cross-Sector Views on a Budding Industry,” joined the company from Citigroup in 2014 as its analyst for Beverages and Tobacco and has now assumed coverage for Cannabis as well. Separate from the sector report, she initiated coverage on Kush Bottles (OTC: KSHB) with an “Outperform” rating and a price target of $3. This is the first time that a leading investment bank has provided coverage on a cannabis stock that trades on the OTC. KSHB is a packaging company based in California with operations in Colorado and the Pacific Northwest as well that generated an estimated approximately $8mm in the year ending 8/31/2016.
“We rate KSHB Outperform. We believe the company offers unique exposure to the high growth, emerging cannabis industry.”
Other analysts contributing to the bullish Cannabis Industry Research Report:
- Ken Cacciatore – Specialty Pharmaceuticals analyst
- Andrew Charles, CFA – Restaurant analyst
- Oliver Chen, CFA – Retail analyst
- Josh Jennings, M.D. – Medical Supplies and Devices analyst
- Kevin Kopelman, CFA – Internet analyst
- Chris Krueger – Policy Strategist with Cowen Washington Research Group
- Phil Nadeau, Ph.D. – Biotechnology analyst
- Doug Schenkel – Life Sciences analyst
- Tyler Van Buren, M.Sc. – Specialty Pharmaceuticals analyst
Azer is bullish on not only KSHB, but also on tobacco companies, especially those with e-cig technology, like Reynolds American (NYSE: RAI). She expects Big Tobacco could double revenue growth in the next two decades as these companies take 20% share of the overall market.
Charles, Chen and Kopelman predict as many as 17,000 cannabis retailers upon legalization. They are bullish on emerging technologies including delivery services, online content, online shopping and online medical evaluations and also see fast-food retailers benefiting from recreational legalization.
We aren’t permitted to post the 110-page bullish Cannabis Industry Research Report, but Vivien Azer shared a top-level summary:
Institutional investors can contact their Cowen sales representative or email firstname.lastname@example.org