CannTrust (TSX:TRST) (NYSE:CTST) began listing on the NYSE two days ago. Uplisting to a major exchange has given TRST and CTST stock a boost. It has also given analysts and investors bullish feelings towards the company's future prospects.
Now, the question everyone wants to know is: Is CannTrust stock a BUY? Let's dig around to see what the experts are saying.
On its first day of trading on the NYSE, CTST spiked in the morning and hit highs of $9.85 USD. This didn't last, however, and the stock dropped throughout the day to $8.97 USD. Two days on, and CTST stock is ticking along nicely, selling for $9.21 USD and up 1.66% on the day.
Sudden dips often happen on the first day of trade, and we have seen it before for cannabis giants such as Aurora (TSX:ACB) (NYSE:ACB) and HEXO (TSX:HEXO) (NYSE:HEXO) when they uplisted to a major exchange. What has not waned, however, is the sentiment surrounding CannTrust. And now analysts at Jefferies are calling BUY on CTST stock.
According to analyst Owen Bennett, CannTrust has one of the strongest medical cannabis businesses:
"We think [CannTrust] is a very smart, consistent operator that has slipped under the radar, maybe a function of a non-U.S. listing [...] We expect its strength to become increasingly evident over the next 12 months which should drive upside."
Is CannTrust Undervalued?
Further, analysts at Seeking Alpha are considering CTST stock undervalued at present. Reasons for this theory are that CannTrust stock has already doubled since early December. The stock jumped from around the $4.50 mark in 2018, to above $9.00 USD this week. But this jump is considered a "move that still has the stock below value."
With a larger liquidity now at its disposal, CTST stock should gain further, and TRST stock should also reap the benefits of this.
Growing capacity is a major undervalued consideration too. CannTrust is in a prime position to have a six-figure growing capacity by the end of the year. Companies capable of producing such high output are currently the ones-to-watch. It's simple really; these are the ones keeping up with the unprecedented Canadian demand. There is pressure mounting on cannabis supplies in Canada, and with an estimated 100,000 kg of cannabis growing capacity, CannTrust should be able to keep up.
Increased liquidity on the NYSE, a capacity that is rivaling some of its larger peers, and an already fair 'buy-in' price highlight CannTrust as an investment with a lot of upside potential, so say the experts.
But what do you think? Is CTST stock in a position to double in future weeks? Are analysts too bullish on this cannabis stock?
Let us know!
Featured Image: DepositePhotos © lightsource