MELIUS RESEARCH LAUNCHES CANNABIS COVERAGE: Melius Research analyst Rob Wertheimer launched coverage of the cannabis space on Monday with a Neutral industry view and named Aurora Cannabis (ACB) his top pick with an Overweight rating and a C$17 price target. On the flip side, the analyst initiated Tilray (TLRY) with an Underweight rating and a $48 price target as he sees incremental risks to investing in the stock, including the dual class structure and ownership of the company. Additionally, Wertheimer started coverage of Canopy Growth (CGC) and Cronos Group (CRON) with Neutral ratings and C$27 and C$80 price targets, respectively. The analyst told investors that he sees cannabis becoming a multi hundred-billion-dollar market with time and continued legal progress.
PIPER SEES CONTINUED MEDICAL CANNABIS GROWTH: Piper Jaffray analyst Michael Lavery wrote in a Monday note that his discussions with a medical pain specialist affirm his expectations of continued growth for medical cannabis, particularly as practitioners search for opioid alternatives. The analyst believes that the national prohibition will end in the next few years with the "STATES Act or federal legalization" and is positive on Tilray and its partnership with Novartis (NVS) keeping his Overweight rating and $90 price target on the shares. The analyst also called GW Pharma (GWPH) a "trailblazer for developing cannabis-derived products for medical use", with its FDA-approved epidiolex cannabidiol product, keeping his Overweight rating and $195 price target on the stock. Lavery further maintains his Overweight rating and $60 price target on Canopy Growth given its current valuation.
COWEN STARTS AURORA AT OUTPERFORM: On Tuesday, Cowen analyst Vivien Azer initiated coverage of Aurora Cannabis with an Outperform rating and C$14 price target. Aurora is "uniquely positioned" to drive leadership in both market share and profitability with the Canadian adult use market in the "early innings," Azer said. Azer designated Aurora Cannabis as her Top Pick in cannabis, replacing Canopy Growth, which she kept a Market Perform rating and a C$29 price target on.
HEDGE FUNDS BUILDING CANOPY SHORT THESIS: Jefferies analyst Owen Bennett said in a Tuesday note that hedge funds appear to be building a short thesis on Canopy Growth. The thesis focuses on harvesting concerns, which in Q2 came in at 15,217kg and then 7,556kg in Q3 and Bennett notes that Canopy has attributed the reduction to rotation timing between harvests. The "short view is it could be due to crop failure due to scaling up too quickly," said the analyst, who has a Hold rating on the stock.
APHRIA GETS LICENSE AMENDMENT: Aphria (APHA) announced Monday that Health Canada has granted the company its license amendment, permitting Aphria to commence production in an additional 800,000 square feet of facilities at its Aphria One location, as part of the company's completed Part IV and Part V expansions.
OTHER CANNABIS STOCKS: Other publicly-traded companies in the space include CV Sciences (CVSI), CannTrust Holdings (CNTTF), General Cannabis (CANN), Innovative Industrial Properties (IIPR), India Globalization Capital (IGC), ICC International Cannabis (KNHBF), Biome Grow (ORTFD), MediPharm Labs (MLCPF), Indiva (NDVAF), OrganiGram (OGRMF), KushCo (KSHB), MedMen Enterprises (MMNFF), Elixinol Global (ELLXF), Planet 13 Holdings (PLNHF), Wayland Group (MRRCF), Khiron Life Sciences (KHRNF) and Liberty Health Sciences (LHSIF).
“Rising High" is The Fly's recurring series focused on cannabis stock news.
Aurora Cannabis
-0.16 (-2.03%)
Tilray
-2.36 (-3.11%)
Canopy Growth
-0.64 (-1.39%)
Cronos Group
+0.14 (+0.61%)
Novartis
-0.37 (-0.41%)
GW Pharmaceuticals
-3.54 (-2.13%)
APHA
+
CV Sciences
+ (+0.00%)
CNTTF
+
Trees Corporation
+ (+0.00%)
Innovative Industrial Properties
-1.05 (-1.47%)
IGC Pharma
-0.3 (-11.36%)
ICC International Cannabis
+ (+0.00%)
ORTFD
+
Changed to MEDIF
+ (+0.00%)
INDIVA
+ (+0.00%)
Organigram
+ (+0.00%)
KushCo Holdings
+ (+0.00%)
MedMen
+ (+0.00%)
Elixinol Global
+ (+0.00%)
Planet 13 Holdings
+ (+0.00%)
Wayland Group
+ (+0.00%)
Khiron Life Sciences
+ (+0.00%)
Liberty Health Sciences
+ (+0.00%)