Cannabis stocks have made a big run since the U.S. election in November. However, Cantor Fitzgerald analyst Pablo Zuanic says the spike in coronavirus cases has created significant near-term risk for multi-state operators (MSOs).
Shutdowns Imminent? The vaccine rollouts that began this week are good news for MSOs in the longer term, but most Americans will not get vaccinated until at least spring or summer of 2021. In the meantime, dispensaries could be at risk for state shutdowns, Zuanic says.
“At this stage, we would be concerned about new restrictions in NV and MA, and even PA and CO (less so in AZ and FL given Republican governors),” he wrote in a note.
Positive coronavirus test ratios are three times higher than the national average in Colorado, Pennsylvania and Nevada. He said trends are particularly troubling in Pennsylvania, where positive test ratios have spiked from 5% on Sept. 1 to 34% in mid-December.