Ratings for cannabis stocks
On February 19, several investment firms upgraded their target prices for Canopy Growth (WEED) (CGC). However, GMP Securities took a cautionary stance by downgrading the company to “hold” from “buy.” To learn more, read GMP Securities Cautions Investors on Canopy Growth. In this series, we’ll discuss the changes in analysts’ ratings and target prices for Canopy Growth’s peers (HMMJ) including Cronos Group (CRON), Aphria (APHA), and Aurora Cannabis (ACB).
We’re in the middle of earnings season. Canopy Growth, Aphria, and Aurora Cannabis have already reported their earnings. Investors got insight into recreational cannabis’s potential. Major cannabis companies’ stock prices have held up well after their earnings.
In the above chart, Aphria has risen nearly 63% YTD (year-to-date) as of February 19. Cronos Group has almost doubled during the same period. Both of the stocks beat the benchmark Horizons Marijuana Life Sciences ETF (HMMJ), which has risen ~46%. Compared to these stocks, Aurora Cannabis has lagged in terms of its return with a YTD gain of 35%. The broader market indexes like the TSE 300 and the S&P 500 have returned 11.3% and 11%, respectively.
Next, we’ll discuss analysts’ ratings and target price for Cronos Group.