Global cannabis market $200B in next decade - Stifel - Aurora Cannabis Inc. (NYSE:ACB)

In the latest pie-in-sky forecast, Stifel says the global cannabis market could reach $200B in the next 10 years, up from ~$8B in 2018.

Recent resultsfor top cannabis producer Canopy Growth (CGC ) reflect the underwhelming ramp to date. Sales in fiscal Q4 (calendar Q1) were C$94.1M. Loss/share was (C$0.98). Shares dropped on margin concerns.

The most significant headwind is legal. Canada is the only G-7 member to date to fully legalize weed. Stifel believes that the market in the U.S.'s northern neighbor will be C$10B by 2023, assuming that authorities and government leaders there will be comfortable with a country full of stoners.

11 U.S. states have OK'd recreational use of pot thus far. 33 allow the medical use of cannabis (actually recreational use for many "patients").

Another headwind will be data from a range of ongoing studies assessing the long-term effects of cannabis consumption, highly unlikely to show increases in productivity or cognitive acuity.

Source: Seekingalpha.com

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