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BofA Merrill Lynch Initiated Coverage on Canopy Growth

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Apr. 17 2019, Published 10:41 a.m. ET

Bank of America Merrill Lynch

With more investment firms joining the coverage on the cannabis industry, investors can gauge the consensus views on the stocks in the sector. Early on April 17, Bank of America Merrill Lynch initiated coverage on Canopy Growth (WEED) (CGC) with a “buy” rating. The rating was driven by the bank’s view that Canopy Growth is among the few companies that could lead the cannabis sector in the long term. Canopy Growth has established itself early in the more valuable sections of the value chain.

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Jim Cramer on Canopy Growth

Canopy Growth has also been on top of many investors’ lists. Jim Cramer said that Canopy Growth is one of his top picks due to its partnership with Constellation Brands. According to Cramer, the capital gives Canopy Growth ammunition to grow and puts it ahead of the competition.

While the partnership with Constellation Brands might be valuable for Canopy Growth’s recreational cannabis business, medical cannabis in international markets is expected to be the next wave for cannabis companies. Countries are open to medical cannabis more than recreational cannabis. Companies are trying to position themselves as medical cannabis businesses. Cannabis companies (HMMJ) including Aurora Cannabis (ACB), Aphria (APHA), and Tilray (TLRY) are already making a foray into the international markets.

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