In this series, we’ll look at changes in ratings and price targets for some of the major cannabis stocks. August was very positive for the sector (HMMJ) with some companies delivering returns in excess of 100% YTD (year-to-date). The momentum has continued in September as well. Let’s discuss the performances of some of the cannabis stocks before we dive into analysts’ ratings and price target updates.
Cannabis stocks’ returns
It’s clear from the above chart that cannabis stocks moved lower for the most part of this year. But then came August and Canopy Growth’s (CGC) (WEED) announcement of a $4 billion investment from Constellation Brands (STZ) that lifted investors’ sentiment towards this industry. A rising tide lifts all boats, and that’s what happened with most of the cannabis stocks.
Canopy Growth delivered a YTD (year-to-date) return of 106%, which is by far one of the best returns in the cannabis sector. However, Tilray (TLRY), which came out with its IPO on August 19, has delivered an eye-popping 328% return as of September 11.
Let’s now turn our attention to the changes in analysts’ ratings and updates on some of the above stocks after the big month of August.