Early on April 17, Bank of America Merrill Lynch initiated coverage on three cannabis stocks. Aurora Cannabis (ACB) received a “buy” recommendation and a target price of 15 Canadian dollars or $11 to be achieved over the next 12 months. Based on the closing on April 16, the target price leaves an upside in excess of 20%. Aurora Cannabis was trading 2.4% higher when the US market (MJ) opened, while Tilray (TLRY) rose 1.3%.
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Cronos Group and Canopy Growth
Bank of America Merrill Lynch also initiated coverage on Cronos Group (CRON) with an “underperform” recommendation. The rating is considered to be between a “hold” and a “sell.” Bank of America Merrill Lynch also set a target price of 17 Canadian dollars or $13. Cronos Group was already trading well above the target price at 21 Canadian dollars. Cronos Group was trading 1.5% lower in the US market early on April 17.
Bank of America Merrill Lynch also initiated coverage on Canopy Growth (WEED) with a “buy” rating. Canopy Growth’s target price was set at 70 Canadian dollars or $52. Canopy Growth closed at 55.5 Canadian dollars on April 16 with a potential upside of 26% in the Canadian market and ~20% in the US market. In the US market, Canopy Growth closed at $43.3. Canopy Growth was trading 3.9% higher in the US market early on April 17.