CIBC on HEXO
On June 17, CIBC lowered its ratings for HEXO (HEXO) to “neutral” from its previous “outperform” rating. This move came after HEXO missed earnings expectations on June 12. CIBC also lowered its price target on the company to 8.5 Canadian dollars from 9.5 Canadian dollars. Let’s compare CIBC’s ratings and price target with the consensus of 15 analysts.
Still a “buy”
In the current month, HEXO still has a consensus “buy” rating, which is unchanged from its ratings before earnings. Four analysts maintained a “strong buy” on the stock, while eight analysts recommended a “buy” in the current month, which declined from nine in the previous month. One analyst maintained a “hold,” while one analyst maintained a “strong sell” on the stock in the current month.
The price target on the company was lowered slightly to 10.5 Canadian dollars in the current month from 10.7 Canadian dollars. Notably, the company’s consensus price target has remained stable since its earnings release. HEXO closed at 7.4 Canadian dollars on June 17, leaving an upside of about 40% from the current price.
HEXO peer Canopy Growth (WEED)(CGC), which closed at 56.1 Canadian dollars on June 17, had a price target of 76 Canadian dollars with a “buy” rating. Aphria (APHA) also had a “buy” rating with a price target of 15.8 Canadian dollars, while CannTrust (CTST) also had a “buy” rating with a price target of 12.6 Canadian dollars.