March Update: Analysts’ Ratings for TLRY, IIPR, and SPRWF



Analysts’ ratings

Cannabis stocks have been highly volatile. Playing the volatility game can be risky. Investors (HMMJ) could use analysts’ consensus view on a stock to gauge and compare the price estimates.

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YTD returns

Companies including Canopy Growth (WEED), Aurora Cannabis (ACB), and Innovative Industrial Properties (IIPR) have delivered healthy returns to investors. So far, Innovative Industrial Properties has returned nearly 95% this year. Supreme Cannabis (SPRWF) has delivered a return of ~76%. Tilray (TLRY) hasn’t performed as well as these stocks and the benchmark ETFs. Tilray has returned ~5% year-t0-date.

Innovative Industrial Properties, which reported its earnings last week, gained nearly 14% after its earnings release. Unlike Tilray and Supreme Cannabis, Innovative Industrial Properties’ business is focused on real estate properties that serve the cannabis business. Innovative Industrial Properties is essentially an REIT headquartered in the United States.

The cannabis industry has many events every day. On March 20, Canopy Growth announced that it entered into a multiyear extraction and processing agreement with HollyWeed North Cannabis. On March 13, HEXO rose after it announced that it will acquire Newstrike Brands. The deal will add ~470,000 square feet to the company’s capacity.

Since the cannabis industry is a hot sector, several new analysts have initiated coverage on cannabis stocks. In this series, we’ll discuss analysts’ ratings for Tilray, Innovative Industrial Properties, and Supreme Cannabis. We’ll see how analysts’ recommendations have changed.


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