CannabisNews420.com – Cannabis/Marijuana Industry News
What has happened inside of the financial world today on April 17th can be considered one of the most striking headlines to come out of Wall Street by way of BofA-Merrill Lynch, which initiated coverage on marijuana stocks Aurora Cannabis Inc (NYSE: ACB), HEXO Corp. (HEXO) and Canopy Growth Corp (NYSE: CGC) with “buy” ratings. Apart from the bullishness of the note, it is also noteworthy because very little Wall Street firms have yet to consider in either way on the marijuana sector as a whole. For instance, only a handful of analysts are reporting on ACB at the current time, and CGC has just eight brokerages in coverage.
However going back to Bank of America’s note, the firm’s analysts feel Aurora and Canopy Growth (ACB) are well positioned to serve the global marijuana market. Aurora, the note said, can benefit from a low-budget business design, while Canopy (CGC) has displayed their ability in Canada to build scale, suggesting it can exceed in new areas moving towards the future.
Analysts believe in their opinion (ACB) shares are will move to the $11 price point. The stock closed this past Tuesday at $8.88 and gapping up this morning to $9.00 in early market trading. The stocks appear to be in consolidation mode after a recent rejection near the $10 mark…
Meanwhile, Bank of America Merrill Lynch estimated that the Canadian cannabis inventory will outpace domestic consumption by the year 2021, at which point they predict the market will become more mature. This will head down the path towards more competition for shelf space, which provides HEXO an upper hand due to its various products, and price deflation.
The firm gave HEXO a buy rating and $10 price target. HEXO shares were gaining 4.3% to $6.20 on April 17th.
CGC, meanwhile, secured a $52 price target and was trading up almost 4% today on April 17th in some pre-market action, after recently finding support from the 200-day moving average. Canopy Growth has already seen an influx of 55% in 2019.
In conclusion, this is a big step in the MJ sector because the more reputable Analyst that open up and provide coverage on these companies the more eyes that will see it attracting more investors as well as helping shareholders feel safe investing in this still young but growing marijuana sector.
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