With regulatory changes sweeping across both Canadian and USÂ markets, Atrium Research analysts say now is the right time to take a fresh look at cannabis stocks.
Weighing on sentiment is a combination of regulatory uncertainty, slowing growth, pricing headwinds, and a lack of institutional capital in the industry.
Atrium’s analysts noted that while investor confidence is low, there has been a shift in the sector with many businesses resuming revenue growth and expanding margins while trading at single-digit multiples.
“We believe there are solid names in the sector that have formidable growth and expanding margins albeit the tough pricing environment,” analysts wrote.
Federal regulatory changes in Canada
Recent regulatory changes in Canada’s cannabis market have included significant updates aimed at easing operational challenges and promoting growth, Atrium’s analysts highlighted.
Health Canada increased the public…
