Echelon Capital 2021 Top PicksClearly it's already time to increase their target price. GLTA
Equity analysts at Echelon Capital Markets unveiled their “Top Picks Portfolio” for the first quarter of 2020 in a research report released Thursday, calling it “an aggressive, catalyst-rich portfolio of high-growth, entrepreneurial companies.”
For the fourth quarter, the firm’s portfolio returned 40.1 per cent, beating both S&P/TSX Small Cap Index (23.5 per cent) and the broader S&P/TSX Composite Index (9.0 per cent).
“The S&P/TSX Small Cap Index extended an outperformance streak over the broader TSX Composite to three consecutive quarters,” the firm said. “This reflects an aggressive recovery from the 38.1-per-cent Q120 decline when it underperformed the 20.9-per-cent decline for the broader Composite Index. We look for investors to remain focused on the high-quality small cap names with specific catalysts or underlying secular growth trends in an environment where low interest rates are expected to persist.”
“Our Top Picks Portfolio 2020 full year return at 74.0 per cent outperformed the 2020 total return of the S&P/TSX Composite and the Small Cap Index by 68.4 per cent and 61.1 per cent, respectively. The Top Picks Portfolio outperformed the Small Cap Index (our closest benchmark) in all four quarters this year and posted three consecutive quarters of double-digit outperformance over the S&P/TSX Composite Index.”
The firm said 8 of the 13 equities selected for the quarter are returning names, which it said is “signalling confidence in our Top Picks continuing to benefit from underlying secular growth trends and ample catalyst opportunities.”
The returning equities are:
* Green Thumb Industries Inc. (GTII-CN, “buy” rating and $38 target)
Mr. Semple: “Green Thumb’s Q420 return of 81 per cent was better than both the New Cannabis Ventures Global Cannabis Stock Index return of 62 per cent and our tracking group of US cannabis MSOs of 71 per cent. GTI outperformed after delivering a solid Q320 earnings beat (sales up 31 per cent quarter-over-quarter) and following the U.S. general election in November 2020 where the cannabis-friendly Democratic party won the Presidential race and New Jersey voters approved adult-use cannabis legalization by ballot.”