[ad_1]
Ian Willms / Getty Images
- Last year was a landmark year for legal marijuana advocates because of legalization in Canada and some US states.
- Major marijuana growers such as Cronos Group, Canopy Growth, Tilray and Aurora Cannabis were listed in the United States last year.
- Marijuana stocks are popular on Robinhood, a popular free-trade application among millennia.
- On Monday, Jefferies became the second largest investment bank on Wall Street to write sales notes regarding popular weed companies.
A Wall Street bank has officially begun to hedge cannabis stocks, while major cannabis companies have attracted the attention of Main Street and Wall Street following a wave of legalization of marijuana .
Last year was a historic year for legal marijuana supporters. Canada and the state of Michigan have legalized the recreational use of marijuana and the US Congress passed the Farm Bill, which legalized hemp, an essential source of cannabidiol.
In addition, major marijuana growers such as the Cronos group, Canopy Growth, Tilray and Aurora Cannabis were listed in the United States last year, prompting investors, especially younger ones, to inject money in the industry. On Robinhood, a popular free-exchange app among Generation Y youth, Aurora has outstripped all other titles, including Apple, in terms of the number of users owning stock.
Faced with the growing demand for information on the marijuana stock market, Jefferies analysts, Owen Bennett and Ryan Tomkins, began writing sales notes for popular weed companies. Jefferies is the second Wall Street investment bank to cover the sector, after Cowen.
Here is a list of the marijuana stocks on which Jefferies initiated a hedge, in ascending order of differences between the bank's price target and the stock trading venue as of February 22:
Cronos Group
MID
Ticker: CRON
Evaluation: Underperformance
Price target: 17 Canadian dollars
Potential drawback: -41%
Comment by Jefferies:
"Although historically a solid operator, we feel that nothing really enthuses us if it 's the investment and the big money from Altria," said the analysts.
"We are also wondering when Altria 's value creation will begin to materialize, especially since there seems to be little short – term appetite for using the money. In this context, we believe that the market has moved forward on itself. "
Source: Jefferies
hexo
MID
Ticker: HEXO
Evaluation: Buy
Price target: $ 5.60 Canadian
Potential potential: -28%
Comment by Jefferies:
"We believe the market has taken the Molson deal as a more telling sign of stronger activity than it is," analysts said.
"Hexo has a strong medical base but seems unprepared for solo success, and for us, its focused strategy of being an ingredient provider for the Fortune 500 reflects a lack of belief in being able to act alone. new agreements do not begin to arrive in those current or bear fruit, the multiple is in danger ".
Source: Jefferies
Therapeutic Emerald Health
MID
Ticker: EMH
Evaluation: hold
Price target: CA $ 4.30
Potential potential: + 6%
Comment by Jefferies:
"We believe that Emerald is well prepared to be a major player in two upcoming segments, namely drug formulations, and health and well-being in leisure," Jefferies analysts said.
"Our short-term warning is that these segments will take some time to grow and really contribute, and at the same time, most of the current capacity is through a joint venture, further limiting the rate of earnings growth."
Source: Jefferies
Cover growth
MID
Ticker: CGC (in the United States), WEED (in Canada)
Evaluation: hold
Price target: $ 64 Canadian
Potential potential: + 9%
Comment by Jefferies:
"With Aurora, we believe that Canopy is best positioned to dominate the coming years in the world, yet we believe that its valuation has reflected this strong positioning and that after 12 months, it is difficult to justify the addition of positions at these levels, "said Jefferies analysts.
"The potential benefit of CBD operations on hemp in the United States, but it is unlikely that it really contributes in the short term."
Source: Jefferies
CannTrust
Courtesy of CannTrust
Ticker: CTST
Evaluation: Buy
Price target: $ 15 Canadian
Potential potential: + 19%
Comment by Jefferies:
"We believe that TRST is a very intelligent and consistent operator that has gone under the radar, perhaps a function of a non-US list," Jefferies analysts said.
"It's one of the strongest medical companies in Canada, it worked very well in the early days of life, it is well positioned to capitalize on derivatives, and it has taken smart international action. expect his strength will become more and more evident over the next 12 months which should lead to the reverse. "
Source: Jefferies
flowr
MID
Ticker: FLWR
Evaluation: Buy
Price target: C $ 5.70
Potential potential: + 24%
Comment by Jefferies:
"We believe that there is a good chance that Flowr is a successful long-term premium player, and everything indicates that everything is being done to make this happen," Jefferies said.
"As the momentum continues to grow throughout the year, and given the potential for listing in the US, we expect a further rise."
Source: Jefferies
Aurora Cannabis
MID
Ticker: ACB
Evaluation: Buy
Price target: $ 12 Canadian
Potential potential: + 31%
Comment by Jefferies:
"We think that Aurora, with Canopy, is best positioned to dominate the global market in the coming years, but the story is less appreciated," said Jefferies.
With the infrastructure in place to significantly accelerate Canadian short-term sales of derivatives and the increased ability of the United States to become more visible, we expect additional potential for improvement over the next 12 years. month. Shareholder dilution was a risk in the past, but we would like to think that it will now be more limited. "
Source: Jefferies
[ad_2]
Source link