Two cannabis retail stocks are strong buys, according to analysts

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Financial experts watching the cannabis industry see positive movement coming for two companies

Strong, solid buys are ideal for many investors looking to take advantage of the strong growth in the cannabis industry. According to different analysts in this space, there are a few stocks that have all the potential to satisfy the pockets of many investors. With 2022 likely to be full of good news, this could be a complete reality. This is especially true when it comes to Toronto-based independent retailer Fire and Flower and Calgary-based producer High Tide.

Experts continue to ensure that sound investments can still be made by basing decisions on the quality of a particular trader, their capital position or access to capital, and their diversification. Frederico Gomes of ATB Capital Markets shared an analysis in mid-December where he viewed Fire and Flower positively with a rating of “Outperform.”

According to the expert, the company’s success was incredibly boosted by its recent acquisition of Hifyre, which carries a 100% gross margin as a digital asset. To this is added the important partnership with the convenience store chain Alimentation Couche-Tard.

“We view FAF as one of the long-term winners in the Canadian retail space due to their partnership with Alimentation Couche-Tard, digital capabilities, and strong capital position,” Gomes said.

Separately, earlier this month, Gomes gave High Tide a “Buy” rating and a price of $13.25 per share for a projected yield of 164%. In his view, Hight Tide, based on its diversified platform that has North American retail exposure, the company has every chance of gaining market share in Canada, while continuing to grow international sales.

“In our view, the Company’s diversified platform offers attractive options and great upside potential, even from a possible federal legalization of cannabis in the US,” Gomes wrote.