Note: This video is part of Morningstar Canada's Cannabis Week Special Report
Kristoffer Inton: Our three top picks are Canopy Growth, Aurora Cannabis and Curaleaf. We see all three of those as undervalued at this time. I think that all three give you good exposure to what we see as a lot of growth coming in the market. For Canopy, it gives investors exposure to the huge remaining growth that come in Canada as well as the exposure to the U.S. through the acquisition of Acreage Holdings. So, we see its geographic footprint as being very attractive. And then, on top of that, we seem them potentially becoming a leader in the consumer packaged cannabis space. So, with all those Canopy looks pretty good.
I think, then, Aurora is also an attractive name. Aurora right now appears to be a little more focused on its production when compared to Canopy but shares look undervalued to us. And then, in addition, their expiration for finding a strategic partner that all the other cannabis companies currently have, is an opportunity for another valuation catalyst to come.
And then, lastly, Curaleaf also looks undervalued to us. Curaleaf will give an investor a pure U.S. exposure and again, U.S. is the biggest and will be the fastest-growing cannabis market in our view. And so, any company that can give you that exposure at a good discount as we see in Curaleaf, we view as very attractive.
