Big Wall Street banks are still cautious on cannabis.
They’re still worried about federal laws related to marijuana. And many banks therefore won’t recommend “pot stocks” to clients.
Once they do – it’ll spark a huge move for these cannabis stocks.
One undiscovered trade could deliver even bigger profits in 2019.
Credit Suisse doesn’t want to “formally” recommend any marijuana stocks.
So, what did they do?
Well, Credit Suisse issued a glowing report on a Fortune 500 company called Constellation Brands (NYSE: STZ).
Constellation owns a 38% equity interest in Canopy Growth (NYSE: CGC). And Constellation has the right to purchase a majority stake in Canopy.
Credit Suisse recommends the shares with a $230 price target.
The target suggests 39% upside for Constellation shares.
The Credit Suisse report focused on Constellation’s strong alcohol business – which includes Corona, Modelo and Ballast Point brands.
The firm expects Constellation sales to grow 6% this year, and earnings could increase by 10%.
Here’s the shocking thing: Despite spending more than one-quarter of the report discussing the cannabis sector . . .
The Credit Suisse analyst doesn’t think Constellation’s investment in Canopy Growth will contribute to the upside in the stock. Specifically, he wrote, “Our target price values Canopy’s future contribution at $0.”
The report did reveal one interesting thing . . .
Canopy has a cannabis beverage ready for production. And apparently that makes the company the first in Canada that’s prepared for the legalization of cannabis drinks.
Canada is slated to allow the sale of drinks with CBD and THC starting in October 2019. This change will dramatically expand the cannabis market and make the product available to millions of Canadians.
Are you ready for 393% profits starting April 1? Even though I LOVE cannabis stocks, this situation could be even more profitable.
Yours in Profits,