Harvest Health stock is moving up nicely in Wednesday’s session despite the broader weakness in the cannabis sector after an analyst at GMP Securities issued bullish a note on Harvest Health & Recreation Inc (CSE:HARV) (OTCQX:HRVSF)
Although medical marijuana was legalized some time back in Canada and parts of the United States and a vibrant new industry grew within a period of less than a year, very few analysts actually bothered with the many marijuana stocks that are available in the United States. However, it has now emerged that one of the analysts at GMP Securities named Rob Fagan, has initiated coverage on the Arizona based cannabis company Harvest Health & Recreation.
Harvest Health Stock Could Double
The analyst at the Canadian firm believes that Harvest Health stock could double in price due to the speed at which it has grown. The company growth is due to a range of factors and some of them include strategic acquisitions and being able to get key licenses. In addition to that, Fagan has stated that the company’s management is highly optimistic about the future of the company.
Fagan believes that HRVSF stock could touch $14 USD. Some of the reasons behind the optimism are simple enough. Since medical marijuana is legal in all states in the United States, there is little interest in American companies among those who invest in these stocks. Canadian companies like Tilray and Canopy Growth rule the roost in those markets. That makes it a stock that is a bit under the radar but could be primed for an upsurge at some point in the long term.
The fundamentals of Harvest Health are sound. It has acquired licenses in many states and currently operates 13 stores in the United States. However, Fagan believes that the number of stores could balloon to as many as 100 by 2021 and there lies the opportunity for a shrewd investor to make a canny investment.
Moreover, Harvest is cash rich and has $320 million in its cash reserves, which could be used by the company towards mergers and acquisitions. Fagan believes that the company’s revenues could touch $800 million by next year. In 2018, it had revenues of $47 million.
Harvest Health stock is up about 2% in early trading and now selling at $7.78 on the OTC market. On the CSE, HARV stock is up 2% at $10.46.
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