Wall Street continued its positive outlook over the impending CBD boom, with Canaccord Genuity’s Bobby Burleson maintaining a “Speculative Buy” rating on 1933 Industries (OTCMKTS:TGIFF) following the announcement that the company's products are now in 46 states. Under their subsidiary, Infused MFG, 1933 Industries is now in 600 stores nationwide.

In a recent note, Burleson maintained a target price of CA$0.70 on the cross-border company, claiming it to be “well-positioned” to benefit from the recent signing of the farm bill which legalized hemp in the U.S.

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“With the passage of the bill, mass market retailers should begin distributing hemp-based CBD products at scale as soon as later this year,” Burleson wrote in his note, which was sent to investors late last week. “We view hemp-based CBD as one of the most promising [quasi] cannabis consumer products in terms of organic growth potential and interest from outside players looking to inject growth into their traditional wellness portfolios.”

1933 Industries is big on CBD these days

The Infused MFG lineup of products is mostly concentrated in stores out West, with the company focused on a cadre of stores in California, Nevada, Arizona, and Colorado. Still, the company does distribute across the country along with string e-commerce sales as well.

“Owning our distribution is key to our growth strategy and to our success, ensuring that our branding and messaging is properly delivered,” said Chris Rebentisch, the company’s chief operating officer in the U.S. “Our operational expertise and excellence have set the benchmark for product manufacturing, distribution, and compliance in Nevada."

According to Burleson, 1933 is on track to increase their output significantly in 2019, with flower up from 600-pounds-per-month to 750 and concentrates quadrupling from 50 kilos to 200 kilos, also on a monthly basis.

Moreover, CBD now represents half of 1933’s revenue, with Canaccord predicting that number to increase in time.

According to 1933 Industries, CBD production should increase tenfold in the near future. In a statement last month the company announced plans to increase cannabidiol production to 2,000 kg per month, which they said is up from 200 kg every month. Local officials have already given proper zoning approval to help 1933 move forward with the project.

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As Burleson’s note shows, the farm bill has sent the hemp industry into overdrive throughout the past few months, as companies look to take advantage of what could be a $5.7 billion by 2020 according to the latest report from cannabis analytics firm New Frontier Data.

Most recently, Canopy Growth Corp. (TSX:WEED)(NYSE:CGC), the darling of the cannabis industry, invested nearly $150 million into hemp operations in New York state, hoping to produce high-margin CBD across the U.S.