Green Thumb Inks Partnership For Cannabis-Infused Drinks; Street Is Bullish

Green Thumb Industries has inked an exclusive partnership to manufacture and distribute Cann’s line of cannabis-infused sparkling drinks in the US starting this spring. According to the partnership deal, Green Read More... The post Green Thumb Inks Partnership For Cannabis-Infused Drinks; Street Is Bullish appeared first on TipRanks Financial Blog.

Green Thumb Inks Partnership For Cannabis-Infused Drinks; Street Is Bullish

Green Thumb Industries has inked an exclusive partnership to manufacture and distribute Cann’s line of cannabis-infused sparkling drinks in the US starting this spring.

According to the partnership deal, Green Thumb () will roll out the distribution of Cann drinks in Illinois this spring and add additional markets including New Jersey, which recently legalized adult-use cannabis sales.   

Cann’s low-sugar and low-calories drinks are made of all-natural juice, herbs, organic agave nectar, and micro-doses of cannabis CBD and THC extract to mimic the strength of a glass of wine or a light beer. The brand, which got its start in Venice, California in 2019, is backed by celebrity investors, including Gwyneth Paltrow, Baron Davis, and Bre-Z.

“The cannabis beverage category is poised for growth. Consumers are increasingly entering the market seeking alternatives to alcohol with familiar consumption experiences,” Green Thumb CEO Ben Kovler commented. “Cann sits squarely in this opportunity, delivers on the consumer need, and complements our brand portfolio with entry into the beverage segment. What’s even better is cannabis drinks can offer a superior experience, fewer calories and no hangover compared to alcohol. We are investing in the space and in the Cann team and we couldn’t be more excited to bring California’s #1 cannabis beverage brand to Illinois and beyond.”

The US cannabis grower said that trends are showing that cannabis beverages are gaining in popularity faster than other cannabis categories. In California, cannabis beverage sales in 2020 grew almost four times faster than total cannabis sales. According to BDS Analytics, Cann last year jumped from fifth place in terms of market share to first with over 600% sales by the end of 2020.

Green Thumb shares popped 66% over the past three months and have surged a stellar 430% over the past year.

Nonetheless, Cantor Fitzgerald analyst Pablo Zuanic last month set a Street-high price target of $62 (75% upside potential) for Green Thumb and maintained a Buy rating on the stock, as he expects sales to propel from $551 million in 2020 to almost $2 billion by 2024 on the assumption that more states in the company's portfolio will legalize recreational weed.

“During the 2020-2024 period we project EBITDA should go from $168Mn to $761Mn," Zuanic wrote in a note to investors. (See Green Thumb stock analysis at TipRanks)

Looking at the consensus rating breakdown, other analysts have a firm bullish outlook. With 9 unanimous Buys issued in the last three months, the word on the Street is that GTBIF is a Strong Buy. That’s alongside an average analyst price target of $40.21, which implies 13% upside potential lies ahead over the coming 12 months.

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The post Green Thumb Inks Partnership For Cannabis-Infused Drinks; Street Is Bullish appeared first on TipRanks Financial Blog.

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