Though marijuana stocks dipped for a second straight week amid growing fears of a cannabis shortage ahead of the opening of Canada’s recreational market later this month, industry analysts remain bullish on the market. In particular, analysts for Canaccord Genuity and Cowen & Company see bright futures for Khiron Life Sciences Corp. (TSX-V:KHRN) and Canopy Growth Corp. (TSX:WEED) (NYSE:CGC) respectively, with both companies having their target prices raised within the past month.

Canaccord raises Khiron on Chilean entry

Last month Khiron’s “first-mover advantage” in Colombia caught the eye of Canaccord Genuity analyst Kimberly Hedlin, who initiated coverage of the company with a “speculative buy” rating and CAD$3.00 per share price point. Khiron, a medical cannabis company headquartered in Canada with core operations in Colombia has since had a few significant developments, including a new strategic partnership with the Daya Foundation in Chile, and the recent launch of their Kuida line of CBD cosmeceuticals. Khiron now lays claim to the first mass-market CBD-based brand approved by INVIMA, Colombia’s health agency.

Keeping the company at a “speculative buy,” Canaccord raised Khiron’s target price to CAD$3.40 per share.

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Partnering with the Daya Foundation in Chile, Khiron now has access to an additional 17,000 medical cannabis patients, which Canaccord calls an efficient acquisition strategy. The deal with Daya also calls for Khiron to begin clinical trials in Chile, which, according to Canaccord, will allow the company to sell products before obtaining the necessary sanitary permits required in the country. Furthermore, Canaccord sees the Chilean market as “cannabis forward,” with a liberal prescribing regime and a conservatively estimated $0.5 billion market.

Kuida, announced in part with Khiron’s new Business Wellness Unit last week, should see robust sales in Colombia. A deal with Farmatodo, one of Colombia’s largest pharmacy chains, with 56 stores and $120 million in revenues annually will significantly bolster sales, according to Canaccord. Online sales are expected to be a significant source of revenue as well for the new product line.

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"In keeping with our stated strategy, the Khiron Wellness business unit and launch of Kuida leverages our global medical cannabis expertise to enter a fast-growing category with immediate revenue generation based on a disruptive, innovative and first-to-market product strategy,” said Alvaro Torres, Khiron CEO in a statement announcing the product last week.

Canopy Growth continues to grow according to Cowen

Last month Canopy Growth Corp. saw a significant upgrade in its target price from Cowen & Company, from CAD$56.00 to CAD$74.00. It was the second such upgrade in as many months, with Cowen having raised their target price on Canopy back in August from CAD$48.

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Overall recommendations for Canopy Growth remain strong, with the bulk of industry analysts recommending Canad’a number one Licensed Producer as either a “buy” or “strong buy.” In fact, only one analyst listed the company as a “sell” in September.

The overall consensus price on Canopy Growth for September was CAD$49.90.