Jefferies initiates coverage on cannabis
Just last week, we saw Seaport Global initiate coverage on some of the big cannabis players in the industry. Early this morning, yet another firm initiated coverage of cannabis stocks. This time, the firm is Jefferies, and here’s what it recommends.
Jefferies initiated coverage of Aurora Cannabis (ACB) with a “buy” recommendation. The firm also provided a “buy” rating for CannTrust. OrganiGram (OGRMF), and Green Organic Dutchman (TGODF).
While these companies got “buy” recommendations, cannabis giant Canopy Growth (WEED) got a “hold” recommendation, and Emerald Health Therapeutics (EMHTF) also received a “hold” from Jefferies.
Notes on the industry
In its notes, Jefferies indicated that the cannabis companies that will lead in the recreational and medical cannabis segments—along with enjoying a strong position in the United States—will emerge as winners. Plus, the firm is expecting more consolidation within the fast-moving consumer goods segment.
Jefferies concluded that the alcohol industry could face a risk from cannabis (HMMJ) becoming more prevalent with consumers.
Meanwhile, CannTrust is set to begin trading on the NYSE under the new ticker CTST. To learn how analysts view CannTrust, check out Why CannTrust Is Trending Higher in February.