Investor optimism for United States cannabis stocks has surged as rescheduling expectations continue to escalate. More than 96 per cent of respondents who participated in the latest investor sentiment survey by ATB Capital Markets believe that federal rescheduling is bound to occur by the end of Donald Trump’s current term in the White House.
The Canadian financial services firm conducted its fall 2025 survey from Sept. 8 to 15. It highlighted that investors have become increasingly bullish about the American cannabis industry. Nearly 54 per cent of survey respondents reported being more optimistic about U.S. cannabis than they did in this year’s spring survey.
A total of 26 anonymous institutional investors were polled for the new analysis. Though based on a relatively small pool of respondents, ATB is regarded for being a well-established firm in Canadian financial markets.
“I think it is very fair to assume that it is going to be rescheduled during his administration,” said ATB Capital Markets Director of Institutional Research and Life Sciences, Frederico Gomes, in an interview on Tuesday.
“It would ease the federal tax burden for companies in the sector and help promote medical research on the plant,” he added.
Opposition from the DEA was one of the factors that delayed the process during the Biden Administration, Gomes highlighted.
As discussed in the survey, Gomes thinks that the AdvisorShares Pure US Cannabis ETF (NYSEARCA: MSOS) would ascend above US$10 apiece if marijuana became recognized as a less dangerous substance nationwide. Other stocks could potentially double in value and if the investors surveyed are correct the equities are currently highly undervalued, Gomes explained.
In the U.S., ATB says Green Thumb Industries Inc (CNSX: GTII) (OTCMKTS: GTBIF) (FRA: R9U2) currently has the best balance sheet by far. Curaleaf Holdings Inc (TSE: CURA) (OTCMKTS: CURLF) and Cannabist Company Holdings Inc (OTCMKTS: CBSTF) (FRA: VW5) are the firm’s other top American picks.
Part of the investment community, consciously or not, is being deceived. $MSOS
You must remember that, based on the facts, the legal #cannabis industry remains one of the most undervalued sectors of the economy.
It's only a matter of time before institutional #investors inject… pic.twitter.com/GQ4c4O1otL— TheMyNotes (@TheMyNotes) October 6, 2025
Read more: Michigan Senate approves 24% cannabis tax to fund state road improvement
Glass House is worthy of consideration, despite ICE scandal
In the interview with Mugglehead, Gomes also mentioned his top choice for California in particular. This licensed producer was not discussed in the survey.
“Glass House Brands Inc (OTCMKTS: GLASF) (FRA: 4KF0) is a great operator that’s been doing great things,” Gomes stated. “A low-cost cultivator, very large scale, probably the best player in the state in my opinion.”
Most recently, the ATB leader’s optimism was shared by a group of American senators in an interview with Marijuana Moment.
Nonetheless, many investors have grown tired of hearing rumours about rescheduling that do not materialize. This constant chatter has been sending cannabis stocks on a roller coaster ride that always seems to end up coasting low to the ground.
Trump said in mid-August that he would be making a determination “within the next few weeks,” but we are now in October and still waiting, unsurprisingly. This followed a DEA hearing on the matter being postponed indefinitely in January after overly optimistic statements about rescheduling being imminent by Chuck Schumer in 2024.
The sheer size of the American market has made it a more lucrative investment prospect than the Canadian sector. Should rescheduling finally occur, the profits from carefully timed and selected investments could be significant.
However, many analysts have cautioned that past rescheduling rumours have continually failed to move policy forward, thereby resulting in several investors still remaining skeptical.
Economic Impact: The US cannabis industry boasts 428,059 jobs and is continually growing, with estimated tax revenue of $8.5 billion if legalized nationwide. pic.twitter.com/ETXxVyMMdV
— Marina (@marinajuanax) October 6, 2025
Read more: Historic cannabis rescheduling imminent in the U.S., multiple sources say
Canadian cannabis industry sentiment modestly improves
To the north, the industry climate has become more favourable to a certain extent, according to the investors polled.
They are about 22 per cent more bullish about the Canadian market than they were last fall, the data showed.
“It [Canada’s cannabis sector] has garnered more attention recently because of international growth,” Gomes explained.
He highlighted Germany’s rapid expansion as a key catalyst. Certain Canadian companies have become key exporters to the EU nation, supplying roughly half of its needs.
Furthermore, the rate of cultivation operations shutting down and going bankrupt has made the industry much more competitive, the ATB researcher pointed out. These two factors have been driving the modest increase in investor enthusiasm, according to Gomes.
“Canadian operators have seen not only revenue growth, but also margin improvements, many of them actually becoming cash flow positive,” he stated, adding that it was what investors want to see.
Village Farms International Inc (NASDAQ: VFF) (FRA: 02V), High Tide Inc. (CVE: HITI) (NASDAQ: HITI) (FRA: 2LYA) and Canopy Growth Corp (TSE: WEED) (NASDAQ: CGC) (FRA: 11L) are currently leading the pack in Canada, ATB Capital Markets says.
Gomes has six years of experience covering the cannabis industry in North America.
Read more: Cannabis stocks and ETFs rally as Trump considers rescheduling
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