Early this morning, the overall cannabis sector got a boost from Cowen & Company for 2019. Cowen’s optimism was driven by the capital expenditures made to increase capacity output in 2018, which are expected to drive strong growth this year.
Cowen also provided an “outperform” rating on three cannabis stocks including Canopy Growth (WEED) (CGC), Tilray (TLRY), and KushCo Holdings. In the pre-market session, Tilray was trading nearly 1.5% higher, Canopy Growth was up 1.7%, and KushCo was up about 3.8%. Early this morning, Aurora Cannabis (ACB) also provided its guidance for the second quarter, and the stock was up 2.3% in the early market session.
Cowen’s bullish outlook also comes from the 6.7% increase in the revenue forecast for the US cannabis industry to $80 billion by 2030. Cowen also noted that weaker sales in the beer segment in 2018 and anemic cigarette growth suggest that cannabis (MJ) could be a catalyst for companies operating in these segments.
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