Germany’s recent decision to legalize limited cannabis possession has sent ripples through the cannabis stock market, especially with the knowledge that Germany ranks as the largest country in Europe. The announcement sparked a surge in stock prices before settling back down.
Notably, following the news, shares of Curaleaf Holdings, Trulieve Cannabis Corp., Green Thumb Industries, and Cresco Labs saw an uptick. Even Canadian companies such as Tilray and Aurora Cannabis, which supply Germany’s medical marijuana market, experienced varied results, promising change in the near future.
Expectations Ahead: German Market Potential
Analyst Pablo Zuanic, in correspondence with Benzinga, highlighted the substantial growth potential in Germany’s medical marijuana market post-regulation. Zuanic emphasized the advantageous positions of Canadian exporters Tilray and Aurora Cannabis, given their established presence in Germany.
Insight from Florida’s Cannabis Market
Zuanic drew parallels with the thriving medical cannabis market in Florida, where over 3.5% of the population utilizes medical cannabis. He projected that if merely 1% of Germans follow suit, the German cannabis market could soar to €1.7 billion ($1.84 billion) by 2025, ten times its current size.
Highlighting Tilray’s dominance in the reimbursed German medical marijuana market and Aurora’s lead in the cash market, Zuanic emphasized the anticipated positive impact for smaller Canadian producers exporting to Germany.
Notably, U.S. multi-state operators like Curaleaf are also poised to benefit, with Curaleaf International Holdings Limited owning a German importer. High Tide Inc. also expressed enthusiasm about entering the German market.
Cannabis Earnings Projections Amid German Market Developments
With the onset of the 4th Quarter cannabis earnings releases this week, Viridian Capital’s insights on the expectations for the top 12 multi-state operators (MSOs) are highly anticipated. The forecasted EBITDA growth for Q4:22 to Q4:23, Q3:23 to Q4:23, and 2023 to 2024 will provide valuable insights for investors.
The blue bar illustrates the expected increase in EBITDA from Q4:22 to Q4:23, the orange bar represents the sequential quarter percentage growth in EBITDA from Q3:23 to Q4:23, and the green bar showcases the projected EBITDA growth from 2023 to 2024.
Image Credit: Geralt and Kindel Media by Pixabay
