Today, the cannabis sector was down. The sector ETFs—the ETFMG Alternative Harvest ETF (MJ) and the Horizons Marijuana Life Sciences Index ETF (HMMJ)—had fallen 2.3%, and 3.6%, respectively.
Also today, CNBC reported that more than 70 companies in the S&P 500 Index had reported their earnings this week. Citing FactSet data, the CNBC article stated that 81% of these companies had outperformed analysts’ expectations.
However, the broader US equity market was trading in red due to the weakness in the global equity market. At 1:56 PM ET, the S&P 500 Index and the Dow Jones Industrial Average were down by 0.2% and 0.6%, respectively.
Cronos Group receives a “buy” rating
Today, Business Insider reported that Stifel’s analyst Andrew Carter upgraded Cronos Group (CRON) from “hold” to “buy.” However, he lowered his price target from 16.50 Canadian dollars to 14 Canadian dollars. The new price target implies an upside potential of 20.7% from its October 17 closing price.
Stifel’s upgrade had led Cronos Group’s stock to rise to a high of 12 Canadian dollars in today’s early morning trading. However, the weakness in the cannabis sector appears to have dragged the company’s stock down. At 1:43 PM ET, the company was trading at 11.09 Canadian dollars—a fall of 4.4% from its previous day’s closing price.
TGOD stock tanks
The Green Organic Dutchman Holdings (TGOD)(TGODF) revealed its new strategic plan today, which includes lowering its financing while maintaining its focus on profitability. With the new strategy, the company expects to achieve positive EBITDA and cash flow by the second quarter of 2020.
TGOD’s new plan failed to impress investors. The stock was down 12.2% at 1:41 PM ET today. This month has been tough for TGOD, as it has lost 31.5% of its stock value as of October 17.
Cowen cuts its price target for Aurora
Today, Cowen and Company lowered its price target for Aurora Cannabis (ACB) from 12 Canadian dollars to 8 Canadian dollars. The new price target represents a return potential of 56.6% from its October 17 closing price of 5.11 Canadian dollars.
Cowen lowering its price target appears to have led Aurora’s stock to fall 5.1% at 1:44 PM ET. It was the third price cut for Aurora this month. Earlier, Jefferies had lowered its price target from 14 Canadian dollars to 7 Canadian dollars. MKM Partners had also cut its price target from 5 Canadian dollars to 3.5 Canadian dollars.
Canopy Growth stock trades in the red
Cowen and Company also cut its price target for Canopy Growth (CGC)(WEED) today from 48 Canadian dollars to 40 Canadian dollars. The new price target represents a return potential of 46.5% from its October 17 closing price. Canopy Growth was trading 4.5% lower today.
This was the fifth price cut for Canopy this month. Earlier, PI Financials, Jefferies, CIBC, and Compass Point lowered their price targets. Also, Seaport Global and Jefferies had downgraded the stock from “buy” to “neutral” this month. Since the beginning of the month, Canopy has lost 10% of its stock value as of October 17.
Juul Labs suspends fruity flavor e-cigarette sales
Yesterday, CNBC reported that Juul Labs would stop the sale of its fruity flavored e-cigarettes with immediate effect. The article added that Juul’s decision came ahead of Trump administration’s decision to ban all flavored e-cigarettes from the market. Recent vaping-related deaths and illnesses appear to have been putting pressure on the state and federal governments to take action. Yesterday, the US CDC (Centers for Disease Control and Prevention) reported that, as of October 15, vaping-related deaths reached 33, while 1,479 people are still suffering from illness.
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