Piper Sandler Takes Look at Cannabis Landscape in US 2023-02-27 11:47:30 AM ET (MT Newswires)
11:47 AM EST, 02/27/2023 (MT Newswires) -- Piper Sandler said Sunday that it believes existing US operators are best positioned to benefit from the "significant" US opportunity but also takes into account continued operating headwinds from price compression.
"However, regulatory expectations continue to drive the stocks, and we believe real change is unlikely over the next two or so years. While SAFE banking could be a key catalyst, and could materially improve investor participation in the space, hurdles remain, and we estimate its chances of passing in 2023 may be just 30-35%," the analysts said.
Also, Piper Sandler does not expect US President Joe Biden's request to review how marijuana is scheduled at the federal level to be a significant catalyst for the industry or to drive needed changes.
"We do not have much hope for passing the SAFE banking act in the foreseeable future, because too many progressive Senators balk at passage without social justice measures and too many conservatives and Republicans balk at passage with those measures," the analysts added.