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Cannabis Sector in Green after Analyst’s Positive Outlook

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Today, BNN Bloomberg reported that Cantor Fitzgerald initiated coverage of six cannabis companies on Monday. According to the report, Cantor Fitzgerald analyst Pablo Zuanic stated in his research report that several cannabis stocks have bottomed out. He believes those stocks look attractive at these levels.

Zuanic projects the Canadian recreational market to reach $2.44 billion by 2020 and $4.5 billion by 2022. He expects the addition of new stores, the introduction of cannabis-derived products, and partnering of CPG companies with cannabis companies to drive the recreational cannabis sales.

Cantor Fitzgerald’s optimistic outlook appears to have led the cannabis sector to rise. At 12:54 PM EST, the ETFMG Alternative Harvest ETF (MJ) was up by 1.3%. The Horizons Marijuana Life Sciences Index ETF (HMMJ) was trading 2.3% higher at 12:39 PM ET.

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Organigram Holdings

Cantor Fitzgerald gave an “overweight” rating for Organigram Holdings (OGI). Cantor Fitzgerald’s “buy” rating appear to have led the company’s stock to rise. Today, at 12:41 PM ET, Organigram was trading 5.1% higher. Overall, 14 analysts covered the stock on November 4, and all of them rated the stock as a “buy.”

Analysts’ consensus price target for Organigram stands at 10.78 Canadian dollars, which implies a return potential of 148.9%. For more analysts’ opinions, please read Organigram Holdings: Why Analysts Are Bullish.

Aphria

Cantor Fitzgerald rated Aphria (APHA) as “overweight.” Today, the stock was trading 2.7% higher at 12:41 PM EST. Other analysts also appear to be bullish on the stock. Of the 12 analysts that cover the stock, 75% gave it a “buy” rating. Analysts gave the stock an average price target of 12.96 Canadian dollars, which implies a return potential of 92.6%.

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Aurora Cannabis

Today, at 12:42 PM EST, Aurora Cannabis (ACB) was trading at 6.1% higher. Cantor Fitzgerald gave a “neutral” rating for the stock. Overall, 16 analysts cover Aurora on November 4. Of these analysts, 43.8% rated it as “buy,” 43.8% favored a “hold,” and 12.5% favored a “sell” rating.

ACB’s consensus price target stands at 8.06 Canadian dollars with a 12-month return potential of 70.9%. Please read Aurora Cannabis’s Revenue: Here’s What Analysts Expect to learn about analysts’ first-quarter expectations.

Canopy Growth

Cantor Fitzgerald rated Canopy Growth (CGC) (WEED) as “neutral.” Today, the company was trading 0.7% higher at 12:42 PM EST. Of the 20 analysts that cover the stock, 50% gave it a “buy” rating. Analysts’ consensus price target for the stock stands at 46.02 Canadian dollars, which represents a return potential of 73.6%.

Canopy Growth plans to report its second-quarter earnings later this month. For analysts’ estimates, please read Canopy Growth’s Q2 Earnings: What to Expect.

Hexo

Cantor Fitzgerald gave an “underweight” rating for Hexo (HEXO) stock. Despite Cantor Fitzgerald’s “underweight” rating, the company was trading higher today. At 12:41 PM EST, Hexo stock was up 1.5%.

Overall, 15 analysts cover Hexo stock. Of these analysts, 53.3% rated it as “hold.” Analysts gave an average price target of 4.64 Canadian dollars, which implies a 12-month return potential of 70.7%.

For more analysts’ rating and price targets of cannabis companies, please follow 420 Investor Daily.

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