Cannabis stocks are mostly lower Monday despite a mostly bullish Jefferies note that initiated buy ratings on five different cannabis stocks.
Analyst Owen Bennett initiated ratings on nine companies while estimating that the legal-weed industry will reach $50 billion in annual sales over the next decade vs. just $17 billion this year.
"We see a base-case conservative industry size of over $50 billion by 2029 and a realistic upside size of $130 billion on wider industry disruption," he wrote. "Global winners to be those that lead in both medical and recreational and have a strong U.S. position."
Bennett also said a "realistic" bullish case could see the industry enjoy as much as $130 billion in sales by 2029 thanks to pot's disruptive nature.