Marijuana stocks have been less than perky of late, but Echelon Wealth Partners analyst Russell Stanley thinks Canopy Growth Corp’s (TSX:WEED) foray into the coffee market is one that underscores its leadership role in the space.

This morning, Canopy announced it had entered into a licensing agreement with Swiss-based hemp company Isodiol International Inc., that will allow Canopy to manufacture and distribute Isodiol “Pot-O-Coffee” and “Pot-O-Tea” marijuana-infused single-serve K-Cup products in Canada and other market.

“This distribution agreement has us positioned to increase our global footprint with the largest cannabis company in the world,” said Isodiol CEO Marcos Agramont. “We will continue to develop our Pot-O-Coffee product lines with ready-to-drink and cold-brew products while working with Canopy Growth for international distribution channels. The Pot-O-Coffee brand is well recognized, and adding additional products to this line will continue to strengthen its market presence.”

Stanley say that while Canopy is making this deal in advance of actually be allowed to sell such products in Canada and many other markets, he believes it is the kind of forward thinking move that puts the company at the head of the pack in its space.

“(Canopy’s) market leadership continues with a pre-emptive strike into ingestible products,” the analyst says. “Canadian laws do not yet permit the manufacture and sale of cannabis-infused products, though as noted in the press release, WEED expects them to be legalized in the near future. We agree, and we view this initiative as evidence of continued market leadership by Canopy.”

In a research update to clients today, Stanley maintained his “Buy” rating and one-year price target of $14.00 on Canopy Growth Corp., implying a return of 67 per cent at the time of publication.

Stanley thinks Canopy will generate Adjusted EBITDA of negative $4.8-million on revenue of $127.9-million in fiscal 2018. He expects those numbers will improve to EBITDA of positive $32.0-million on a topline of $278.7-million the following year.