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Medical marijuana continues to gather major attention and yesterday, CNBC's Guy Adami announced that he is betting on cannabis-based medical company, GW Pharmaceuticals (GWPH).
Adami considers GW to not only be a play on medical marijuana but also a play on intellectual property. The company is a market disruptor and will be one of the biggest winners within the medical marijuana industry.
GW Pharma: An Industry Disruptor
GW Pharmaceutical is not a marijuana stock. It is a pharmaceutical company that already sells a cannabis-derived treatment for multiple sclerosis in 27 countries and it has by far, the most advanced pipeline of cannabis-derived products.
Not only does GW have the most advanced pipeline of products but it also has the most significant Wall Street coverage. Some of the largest banks in the world such as Goldman Sachs, Bank of America and Morgan Stanley, have Buy ratings on the firm. GW currently has an average price target of $154.95.
In late 2016, when Goldman Sachs initiated coverage on GW, it also placed a $390 acquisition price on the firm. Goldman Sachs was the first firm to issue a metric like this on GW and it is a testament to the value of GW's intellectual property.
A Favorable Outlook
We are favorable on GW Pharmaceuticals as it continues to execute on its product pipeline and work to create value for shareholders. Shares of GW Pharmaceuticals have come off its recent lows and are up more than 10% in the last month.
GW Pharmaceuticals has several major potential catalysts over the next two quarters and we continue to view the company as one of the best marijuana investment opportunities.
Our favorable view is based off: 1) GW Pharma has a deep pipeline of products in advanced stages of FDA testing, 2) Clinical data on the company's leading product candidate, Epidiolex has been very positive, 3) Management continues to execute and deliver on its promises, 4) GW has a strong balance sheet which will support the cost of clinical trials, and 5) Valuation is attractive as the average Wall Street price target implies more than 50% upside to current levels.
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This article was written by Mark Maulden for https://technical420.com/cannabis-article/cannabis-stocks-shine-primetime-cnbc on .