Boosted by the strong broader equity market, the cannabis sector is trading in the green today. At 12:58 PM ET, both the ETFMG Alternative Harvest ETF (MJ) and the Horizons Marijuana Life Sciences Index ETF (HMMJ) were up 0.8%. The S&P 500 Index was up 0.3% on optimism over the advancement of trade negotiations between the US and China. Let’s look at the cannabis companies that are in the news today.
Canopy Growth reveals its Cannabis 2.0 products
Today, Canopy Growth (WEED) (CGC) officially revealed its Cannabis 2.0 products, which consist of its Distilled Cannabis concept, chocolates, and vapes. The Distilled Cannabis concept is a proprietary process developed by the company, which distills the whole cannabis flower into a clear liquid that can be used in THC- and CBD-infused beverages.
Last week, the company received a license for its Ontario beverage facility from Health Canada. The license allows the company to operate and store Cannabis 2.0 products at its 150,000-square-foot facility. Today, the company was up 1.5% at 12:44 PM ET. However, it had lost 32.6% of its stock value year-to-date as of yesterday.
MedMen stock tanks over 9%
Yesterday, MedMen Enterprises (MMEN) (MMNFF) reported its fiscal 2020 first-quarter earnings after the market closed. For the quarter, the company missed both revenue and EPS estimates. Its revenue came in at $43.97 million, lower than analysts’ estimate of $46.5 million. Its net loss stood at $0.14 per share, more than analysts’ estimate of a loss of $0.12 per share.
Following its weak first-quarter performance, Canaccord Genuity cut its price target by 50% to 1 Canadian dollar. This year, the company had already lost 83.4% of its stock value as of yesterday. Today, its stock was down another 9.4% as of 12:37 PM ET.
Jefferies initiates coverage on KSHB
Today, Jefferies initiated coverage on KushCo Holdings (KSHB) with a “buy” rating, as reported by The Fly. The investment company has also given KushCo a 12-month price target of $3.50, which represents a 12-month return potential of 125.8%. As reported by The Fly, Jefferies analyst Owen Bennett wrote in his research note that KushCo Holdings’ valuation looks cheaper than its peers’. Jefferies’s “buy” rating appears to have led the company’s stock price to rise today. At 12:44 PM, KSHB was up 10.3%.
Cresco Labs falls over 3%
Yesterday, Cresco Labs (CRLBF) reported its third-quarter earnings results after the market closed. For the quarter, the company missed analysts’ revenue estimate by 4.2%, while its net losses were 97.2% higher than analysts’ estimates. For more info, read Cresco Labs Missed Analysts’ Q3 Estimates. Today, Canaccord Genuity lowered its price target for Cresco Labs from 19 Canadian dollars to 18 Canadian dollars. The company’s weak third-quarter performance and analyst price cut may have caused its stock to fall. Today, at 12:38 PM, Cresco was down 3.0%.
For more cannabis-related news, be sure to check out 420 Investor Daily.