Jesse Pytlak, CFA, is an Analyst in the Institutional Equity Research department of Cormark Securities Inc. and covers the cannabis industry. He joined Cormark in 2013. Previously, Mr. Pytlak worked at Ewing Morris & Co. Investment Partners and State Street. He received his Bachelor of Commerce with honors from McMaster University in 2007 and his Master of Finance from Queen’s University School of Business in 2013.
In this exclusive 3,115 word interview, only in the Wall Street Transcript, Mr. Pytlak give his top picks in this highly volatile sector:
“I cover 14 cannabis companies at the moment, and my coverage is actually quite evenly split between the Canadian-based cannabis companies such as Canopy (NYSE:CGC) and Cronos Group (NASDAQ:CRON) and the larger U.S.-based multistate operators such as Acreage (OTCMKTS:ACRGF) and Curaleaf (OTCMKTS:CURLF).
Cormark has been involved in the sector since about 2013, when the very first Canadian licensed producers started to trade publicly, and then, we started to cover some of the U.S. names in 2017. So we’ve been pretty early in this space and have really been able to observe the progression of the sector, both in Canada and the U.S.”
One specific stock pick stands out for Mr. Pytlak:
“Right now, I see the most compelling opportunities in the U.S. cannabis names, so my top pick in this space would be Curaleaf. The company has the largest vertically integrated operating platform in the U.S. today, with assets and exposure to a mix of 13 medical and adult-use states.
This shows the company is able to scale and execute operationally on a multistate basis, which is a challenge in the U.S. given the inconsistent regulatory structures in each state. Several of the current medical markets are contemplating adult-use legalization, including New Jersey and New York, so you have some good optionality from that.
And then finally, Curaleaf has the strongest balance sheet in the U.S. sector. It raised around $400 million with its go-public transaction, so very well-capitalized to continue to build out its footprint and pursue M&A. I have a C$15 target price on this stock.”
Get all of Mr. Pytlak’s top picks in the complete 3,115 word interview, exclusively in the Wall Street Transcript.