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Cannabis Stocks: Canaccord Updates Target Prices

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Last month was tough for the cannabis sector. The ETFMG Alternative Harvest ETF (MJ) and the Horizons Marijuana Life Sciences Index ETF (HMMJ) fell 6.6% and 12.1%, respectively. However, the S&P 500 Index rose 2% during the same period. The expectation of lower sales in the second half of 2019, higher operating expenses, and vaping-related deaths dragged the cannabis sector down. Amid weakness in the sector, Canaccord Genuity lowered its target prices for several cannabis companies last week, according to a report from The Cannabis Stock.

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Aurora Cannabis

For Aurora Cannabis (ACB), Canaccord lowered its target price from 13.50 Canadian dollars to 8.00 Canadian dollars. However, the investment firm rated the stock as a “speculative buy.” Overall, Aurora Cannabis is covered by 16 analysts as of November 1. They have a consensus target price of 8.06 Canadian dollars, which implies a 12-month return potential of 71.9%. Meanwhile, 43.8% of the analysts recommend a “buy,” 43.8% recommend a “hold,” and 12.5% recommend a “sell.”

Canopy Growth

Canaccord cut its target price for Canopy Growth (CGC) (WEED) by 50% to 40 Canadian dollars with a “speculative buy” rating. Overall, 20 analysts cover the stock as of November 1. Among the analysts, 50% recommend a “buy,” 45% recommend a “hold,” and 5% recommend a “sell.” Analysts have a consensus target price of 46.02 Canadian dollars, which implies a 12-month return potential of 77.7%.

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Cronos Group

Canaccord lowered its target price for Cronos Group (CRON) from 17.00 Canadian dollars to 13.00 Canadian dollars. Overall, the investment firm  rated Cronos Group as a “hold.” As of November 1, 58.1% of the 12 analysts that follow the stock have rated the company as a “hold.” Analysts’ average target price for Cronos Group was 15.85 Canadian dollars, which implies a return potential of 46.5%.

Aphria

For Aphria (APHA), Canaccord lowered its target price from 14 Canadian dollars to 10 Canadian dollars and rated it as a “speculative buy.” Among the 12 analysts that cover Aphria, 75% recommend a “buy” as of November 1. Analysts’ consensus target price is 12.96 Canadian dollars, which implies a 12-month return potential of 90.3%. Read Aphria: Why Jefferies Recommends a ‘Buy’ to learn more.

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HEXO

Canaccord rated HEXO (HEXO) as “hold” with a target price of 3.50 Canadian dollars. Overall, analysts favor a “hold” rating for HEXO. Among the 15 analysts that follow the company, 53.3% recommend a “hold.” Analysts’ consensus target price is 4.64 Canadian dollars as of November 1 with a return potential of 61.8%. For more on analysts’ ratings, read HEXO: Analysts Downgrade, But Stock Rises 1%.

Supreme Cannabis

For Supreme Cannabis (FIRE), Canaccord lowered its target price by more than 30% to 1.60 Canadian dollars. However, the investment firm rated the company as a “speculative buy.” Overall, eight analysts cover the stock. Among the analysts, 75% recommend a “buy” as of November 1. Analysts’ consensus target price is 2.23 Canadian dollars with a 12-month return potential of 217.9%.

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The Green Organic Dutchman

Canaccord reduced its target price for The Green Organic Dutchman (TGOD) from 1.25 Canadian dollars to 1.00 Canadian dollars. Overall, the investment firm has given the company a “hold” rating. Among the six analysts that follow The Green Organic Dutchman, 50% recommend a “buy.” Analysts’ consensus target price is 3.28 Canadian dollars, which implies a 12-month return potential of 190.6%.

OrganiGram Holdings

For OrganiGram Holdings (OGI), Canaccord cut its target price from 10.50 Canadian dollars to 8.50 Canadian dollars. The investment firm rated the stock as a “speculative buy.” Overall, analysts are bullish on OrganiGram. All 14 analysts that cover the stock recommend a “buy.” To learn more, read Organigram Holdings: Why Analysts Are Bullish.

Other analysts have a bearish outlook for the cannabis sector. Read Analysts Turn Bearish on Aurora, Other Cannabis Stocks to learn more. For more cannabis news, please follow 420 Investor Daily.

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