Organigram Holdings (OGI.V) breaks out today. Not only is its stock price trading at all-time highs at the time of writing but also does it break out above its recent top. This is a classic, textbook breakout. As per our bullish forecast published in 5 Top Cannabis Stock Forecasts for 2019 and 2020 we see the Organigram Holdings stock price rising to $40. Hard to believe? Absolutely, but all charts and signals are pointing to this.
Some may think that InvestingHaven’s research team has gone crazy. We are absolutely rational and factual when analyzing and publishing our bullish forecasts.
InvestingHaven’s Cannabis Stock Forecasts for 2019 and 2020
Note that we consistently published bullish forecasts on top cannabis stocks:
- Canopy Growth stock forecast for 2019
- Emerald Health Therapeutics stock forecast for 2019
- Aurora Cannabis stock forecast for 2019
- Cannabis Stocks in Canada Forecast for 2019.
Our rationale is very simple: fundamentally the cannabis stock sector is booming like crazy.
Again, these forecasts are not meant to exaggerate in any way. This is just meant to identify reasonable price target in a market that is set to become ultra hot in 2019 and 2020.
Organigram Holdings Stock Price Bullish With BUY Rating
Pepper International tipped the cannabis sector as a huge growth area, and this forecast appeared on CNBC yesterday.
“If you want to be in something that’s very growthy, and actually legitimate as it is legalized and controlled properly, I think this is the place to go,” Carol Pepper of Pepper International told CNBC’s “Squawk Box Europe” on Friday. Pepper said legalization in Canada had “blown through expectations” and the success had reached the point where firms based there were now exporting to Europe.
Moreover, today we see investment bank Jefferies publishing its shortlist of top cannabis stocks. One of the top cannabis stocks with a buy rating was Organigram Holdings, next to Aurora Cannabis (ACB), Green Organic Dutchman, CannTrust Holdings and Flowr.
Jefferies sees 20 to 40 pct upside. We believe this is their most conservative scenario because if and when cannabis get momentum they tend to rally 10 pct per day.
Case in point: Organigram Holdings is rising 10 pct just today!
Organigram Holdings: Stock Price Target of $40 Underway
How do we derive a price target of $40 the Organigram Holdings stock price?
Very simple, fundamentally this a sector that has just started growing. The growth potential is enormous, and per Tsaklanos his 1/99 Investing Principles it is a handful of cannabis stocks that will outperform their peers.
Moreover, as part of the analysis on the upside potential, we looked at the sector leader Canopy Growth (WEED.TO). The only way to rationalize a forecast is to consider the sector leader as a baseline.
We see a 3 to 4 fold upside potential in Canopy Growth. Note that the upside potential is in the form of a blow off top, not an average annual price. Because of this we can easily derive an even more leveraged upside potential for the smaller but more promising stocks like Organigram Holdings.
Organigram Holdings breaks out to all-time highs today. We picked Organigram as one of our top picks in the cannabis sector.
Note, as a bonus in our crypto investing service we tipped Organigram as a top performer on Oct 19th as well as Nov 7th. We suggested members to wait taking positions until stock market turmoil would be over. On Jan 2nd 2019 when Organigram Holdings was trading at $5.6 we followed up suggesting to stand by for Organigram’s breakout. One week later we confirmed the breakout. Timing was great, and members who took the trade did so 50% below the current price levels.
Organigram Holdings is one of the few cannabis stocks that trades at all-time highs which confirms leadership in its sector. Our forecast of $40-45 as a blow-off top in 2019 or 2020 is underway.
We want to see 5 daily closes above $8.50 in order to get a reliable confirmation.