‘We are calling the bottom’: Analyst sees brighter outlook for pot stocks

‘We are calling the bottom’: Analyst sees brighter outlook for pot stocks

A New York-based analyst says Canada’s cannabis sector has bottomed out, predicting several positive events in the coming year should catalyze pot stocks as valuations trade at two-year lows. Cantor Fitzgerald Analyst Pablo Zuanic, who initiated coverage of six cannabis stocks Monday, said in a report to clients that several pot companies are attractive at current levels based on the long-term opportunity and that concerns hanging over the sector are priced in and overdone. “We are calling the bottom on Canadian cannabis stocks and think positive catalysts far outweigh negative ones,” Zuanic said in the report. He initiated coverage of Aphria Inc. and Organigram Holdings Inc. with “overweight” ratings, while Aurora Cannabis Inc., Canopy Growth Corp. and Tilray Inc. were assigned “neutral” ratings. Hexo Corp. was assigned an “underweight” rating. Zuanic attributed his bullishness to strong growth seen in Canadian recreational cannabis sales, an increase in retail store openings, the pending roll-out of Cannabis 2.0 products such as vapes and edibles, further sector consolidation, and potential interest from major consumer packaged goods companies partnering with pot companies. Some risks to his outlook include potential changes to regulations amid the U.S. vaping-related health crisis and lower prices that may result in…

Excerpt only …
READ MORE BELOW
Source : New feed
Link to original : ‘We are calling the bottom’: Analyst sees brighter outlook for pot stocks
reposted by Cannabis News World

This site uses Akismet to reduce spam. Learn how your comment data is processed.