On the last day of 2018, we released a series urging cannabis investors to add HEXO (HEXO) (HYYDF) to their watchlists. Since then, we’ve seen the stock climb by over ~35% as of January 7.
Yesterday alone, HEXO gained nearly 10% on positive notes from Beacon Securities.
Beacon Securities gave HEXO stock a “buy” recommendation and a price target of 11 Canadian dollars. HEXO closed at 6.4 Canadian dollars on January 7, indicating a potential upside of 72% if the stock reaches its price target in the next 12 months.
Two factors drove Beacon’s optimism. Firstly, HEXO recently completed 1 million square feet of production space and received initial licensing to deliver ~108,000 kilograms of product. Secondly, with just a handful of cannabis stocks listed on US exchanges, Beacon found value in HEXO’s plans to list in the country. Other cannabis stocks (HMMJ) currently listed in US markets include big players Tilray (TLRY), Canopy Growth (CGC) (WEED), and Cronos Group (CRON).
Beacon also hinted that HEXO could be a good target for a strategic buyer possibly looking to enter the cannabis market.
Next, let’s look at the outlook on HEXO’s financial performance followed by the consensus ratings on its stock.