News

IM Cannabis Corp. IMCC and Avant Brands have sealed a pivotal international trademark licensing agreement aimed at launching Avant's flagship brand, BLK MKT, in Germany's cannabis market. This strategic move is poised to significantly enhance both companies' presence and impact in this burgeoning sector.

Driving Market Penetration

The partnership's core objective is to grant IM Cannabis' German subsidiary, Adjupharm GmbH, exclusive rights to introduce the BLK MKT brand in Germany's medical cannabis landscape. With Germany recently legalizing medical cannabis, this agreement appears well-timed, aligning with the country's growing acceptance and demand for high-quality cannabis products.

The licensing agreement reflects IM Cannabis' commitment to executing a premium strategy in Germany, complementing its endeavors in Israel. This collaboration not only reinforces Avant's standing in the ultra-premium segment but also amplifies IM Cannabis' capability to deliver top-notch cannabis offerings to Germany.

Positive Market Impact

Both IM Cannabis and Avant are optimistic about the positive outcomes anticipated from this collaboration. Leveraging Avant's premium cannabis products and IM Cannabis' robust sales, marketing and distribution expertise, the companies are poised to meet burgeoning demand in Germany.

IM Cannabis expects the partnership to enhance supply chain efficiency and deliver quality brands to Germany. Avant, on the other hand, emphasized the agreement's significance in its longstanding partnership with IM Cannabis.

Avant's ICANN-GAP and GACP certifications position it strongly for international cannabis distribution.

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Cannabis Market Prospects

Going by a Mordor Intelligence report, the global cannabis market, with an estimated size of $33.84 billion in 2024, is expected to reach $69.25 billion by 2029, at a CAGR of 15.40%. This expansion is fueled by increasing acceptance of medicinal usage and the parallel rise in recreational cannabis adoption spurred by global legalization efforts. North America leads this surge, with the United States witnessing significant growth in medicinal cannabis use. Legalization trends across countries like Australia, Canada, Germany and Thailand further indicate a bright future for the industry, driven by growing recognition of cannabis's therapeutic potential.

Over the past year, shares of IMCC have risen 24.2% compared with the industry’s 2.8% growth.

Zacks Rank and Key Picks

IM Cannabis carries a Zacks Rank #4 (Sell) currently.

Some better-ranked stocks in the broader medical space are DaVita DVA, Stryker SYK and Cardinal Health CAH. While DaVita sports a Zacks Rank #1 (Strong Buy), Stryker and Cardinal Health carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

DaVita’s stock has surged 63.8% in the past year. Earnings estimates for DaVita have risen from $8.97 to $9.23 for 2024 and from $9.77 to $10.01 for 2025 in the past 30 days.

DVA’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 35.6%. In the last reported quarter, it posted an earnings surprise of 22.2%.

Estimates for Stryker’s 2024 earnings per share have remained constant at $11.86 in the past 30 days. Shares of the company have moved 20.8% upward in the past year compared with the industry’s rise of 2.7%.

SYK’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 5.1%. In the last reported quarter, it delivered an earnings surprise of 5.8%.

Estimates for Cardinal Health’s 2024 earnings per share have moved down 0.1% to $7.28 in the past seven days. Shares of the company have surged 39% in the past year compared with the industry’s 9.2% rise.

CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 15.6%. In the last reported quarter, it delivered an earnings surprise of 16.7%.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.