One Wall Street analyst sees cannabis e-commerce company CannaOne Technologies Inc. (CSE:CNNA) (OTCPK:CNONF) making a serious rebound this year, offering the company a "BUY" rating and a hefty price target.
According to MarketBeat, an analyst from Fundamental Research is offering CannaOne a 12-month price target of C$1.00, which represents a whopping 488.24% from its current share price of C$0.17.
The "BUY" rating, which has been consistent for the last three months, is very encouraging after a particularly rough year for CannaOne Technologies Inc. (CSE:CNNA) (OTCPK:CNONF), with the company's stock dropping significantly amid uncertainty in the cannabis market in 2019.
Meanwhile, Morningstar.com believes a fair value for CannaOne Technologies Inc. (CSE:CNNA) (OTCPK:CNONF) US-listed stock is US$0.32, meaning the stock is undervalued and currently trading at a 52% discount.
CannaOne Technologies Inc. (CSE:CNNA) (OTCPK:CNONF) is a software development and technology company that has developed its own proprietary online e-commerce marketplace solution that links the rapidly expanding CBD industry to consumers.
The company’s first consumer product, BloomKit, is a software suite that delivers a complete online toolkit for cannabis companies.
In June 2019, CannaOne helped launch the BWell Market in the US, facilitating the sale of a large selection of premium CBD products from numerous suppliers to consumers. Since BWell’s initial launch, it has been able to attract some of America’s most recognized CBD brands, including Select CBD, and CBD-FX. BWell currently holds over 200 SKUs. The company also secured contracts with underlying expectations to launch additional marketplaces in Mexico and the UK marketplace during the first half of 2020.
Most recently, CannaOne Technologies Inc. (CSE:CNNA) (OTCPK:CNONF) announced that it has signed a letter of intent (LOI) with SpeakEasy Cannabis Club Ltd., (CSE:EASY) to launch the first CBD e-commerce marketplace in Canada.
“To secure a partnership with SpeakEasy, being a highly reputable and vastly experienced agricultural cannabis licensed producer in Canada will provide significant external validation to our business," said CannaOne Technologies CEO Solomon Riby-Williams. "Our technology was built with the specific goal to get cannabis products to consumers in as fast and fresh a manner as possible and as we continue to endeavour to develop partnerships our worldwide delivery footprint will invariably grow and expand."
CannaOne Technologies' CBD Market Opportunity
CBD awareness among US consumers increased from 49% in 2018 up to 70% last year, and CBD sales grew significantly from 29% in January 2019 up to 59% in August 2019, offering CannaOne Technologies Inc. (CSE:CNNA) (OTCPK:CNONF) a unique and sizeable opportunity.
In 2020, the US CBD market is expected to generate roughly US$5 billion in sales, which represents an astounding compound annual growth rate (CAGR) of 706%. After this massive increase in sales, the market is expected to increase at a CAGR of 107% through to 2023 to reach US$23.7 billion.
And that's just in the US. The global CBD market is expected to be even bigger, with market research firms predicting it to reach $2.2 trillion by 2026. Not only that, the dynamics of where these products are sold and purchased is also shifting more and more towards online sales.
As mentioned, CannaOne Technologies Inc. (CSE:CNNA) (OTCPK:CNONF) has developed not one, but three CBD marketplaces in the US, Mexico, and the UK and is expected to launch a fourth in Canada.
Indeed, the company is well-positioned to capitalize on the ever-growing CBD market, and based on analysts' recommendations, it might be the perfect time for investors to add CannaOne Technologies Inc. (CSE:CNNA) (OTCPK:CNONF) to their portfolios.
Featured Image: CannaOne Technologies