Benchmark initiated coverage of Colorado-based cannabis company Charlotte's Web Holdings Inc. with a buy rating and a $25 price target that is 25% above its current trading level. Analyst Mike Hickey listed a range of positives for the stock, including an early move advantage in the CBD market, a vertically integrated business model with a large 2018 hemp harves, and the rapid expansion of its retail network. "CWEB is a US market share leader and pure play in the CBD market, with an established brand, 4,000-plus domestic retail distribution locations and significant online sales," Hickey wrote in a note. The analyst also lauded the recent 2018 Farm bill, which legalized hemp, which he now expects will become a significant agricultural commodity. The company is expecting to benefit from the CBD market, which The Hemp Business Journal is expecting to become a nearly $7 billion market by 2023. Companies including CVS , Rite Aid and Walgreens have started selling CBD-infused products, although these are not yet allowed by the U.S. Food and Drug Administration. The FDA took over regulation of CBD from the DEA when hemp was legalized and it has said companies cannot add the substance to food or drinks for now. However, some companies have moved ahead anyway, as they are not expecting enforcement actions. Charlotte's Web shares have gained 81% in the year to date, while the S&P 500 has gained 11.9%.