We see some values, although we don’t think any of the companies have moats.
We have initiated coverage of cannabis, an industry we forecast to grow by 9 times through 2030 amid widening legalization and increased participation for the U.S., Canadian, and international markets.
For the United States, recreational cannabis and medicinal cannabis have penetrated just 8% and 21% of their estimated markets, leading to our expectation for 25% and 15% compound annual growth rates through 2030, respectively. We expect six more states to legalize recreational cannabis and three states to expand commercial distribution. Furthermore, we expect the federal government will recognize states’ rights to decide legality.
Kristoffer Inton does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.