OrganiGram stock was one of the biggest gainers among cannabis stocks earlier this year, and although it has shed much of its gains due to the downturn in the sector, it is still up by more than 25% in 2019 so far. OrganiGram Holdings (TSX:OGI) (NASDAQ:OGI) has been performing better than the market so far this year, and that is a commendable performance.
That being said, it is important to figure out whether the stock could be a good medium- to long-term investment. In other words, it is time to gaze into the potential future of the company.
Key Drivers
First and foremost, it is important to figure out just how big the entire cannabis industry can become at a global level. If it can grow sufficiently big, then there will be a lot to go around for a number of companies. Industry leaders say that the market could eventually grow into a behemoth worth $150 billion. However, that is under the assumption that the product is going to be made legal in a large number of markets in which it is currently illegal. This will, no doubt, take a long time.
>> CB2 Insights Rises as Company Expands UK Market Presence
OrganiGram stock is up over 1.20% at $4.21 on Nasdaq.
However, other research firms like Statista and Grand View Research have made more realistic estimates. Statista has stated that the market could be worth $63.5 billion by 2024, while GVR has predicted valuation of $66.3 billion by 2025.
OrganiGram Holdings is already one of the biggest producers and hopes to produce 113,000 kilos of cannabis by the end of 2019. Moreover, it has supply agreements in place with the 10 provinces in Canada and has also struck up key partnerships elsewhere. Additionally, the company has struck up partnerships in the overseas markets in Germany and Siberia.
On top of that, the relatively low cost of cultivation gives the company a significant competitive advantage over its peers. While experts believe the near future might well be choppy, investors who have a long-term plan could do well to keep an eye on OrganiGram stock.
Featured image: Canva
