Although recreational cannabis use was legalized in Canada in 2018, with the legalization of cannabis now gaining substantial momentum in the United States, Canadian pot companies should have immense opportunities to expand their presence south of their border. Consequently, Wall Street analysts expect shares of Canopy Growth (NASDAQ:CGC), Tilray (NASDAQ:TLRY), and Village Farms (VFF) to rally significantly in the near term. Read on.While the stellar performance of cannabis stocks since their nadir in 2020 is due to multiple contributing factors, including the expected emergence from COVID-19 lockdowns, optimism surrounding the large-scale legalization at the state level in the U.S. has certainly been a major contributing factor. With an increasing number of states legalizing the use of cannabis for medical and recreational purposes, cannabis sales are expected to increase this year and beyond.
The burgeoning cannabis market in Canada has been gaining momentum on the back of increasing cannabis legalization in the United States. This could open up major markets for Canadian pot companies and allow them significantly increase their market shares.
The cannabis market is estimated to grow at a 28% CAGR over the next five years to reach $90.4 billion. With governors of many states pushing for federal decriminalization of marijuana, Wall Street analysts believe financially-strong Canadian cannabis stocks Canopy Growth Corporation (CGC), Tilray, Inc. (TLRY), and Village Farms International, Inc. (NASDAQ:VFF) could gain significantly in the near term.