After Cannabis stockholders had little reason to rejoice over the past few months, the past two days have provided at least a few positive signals. Already on Wednesday the shares of Canopy Growth, Aurora Cannabis & Co gained significantly. Canopy gained 15% on its home stock exchange in Toronto, Aurora Cannabis a good 12%. The market had only expected a loss of $0.31 (CA$0.41) per share.
Canopy Growth and Aurora Cannabis stocks are looking up. In the most recent study by Bank of America, Merrill Lynch, analysts have upgraded Canopy Growth’s stock to “buy.”
In September, the Bank of America downgraded the value to “Neutral.” But after the massive sell-off of cannabis stocks in the past weeks and months, the stocks were able to show their first signs of life again.
Aurora Cannabis stocks gained more than 12% on Wednesday on the Home Stock Exchange in Toronto while Canopy Growth looked brighter. Their shares gained more than 15%.
A positive study by analysts at Bank of America Merrill Lynch has given wings to this development. You can find more information about this industry and other important news in the cannabis sector in the Hemp.im app.
This app collects the latest cannabis investing news in bite-sized chunks that are easy to digest.
Canopy Growth and Aurora Cannabis stocks take a turn for the better
The industry has had to contend with considerable difficulties in recent months. On the one hand, trading in Canada was worse than expected, but production expanded significantly.
This resulted in an oversupply, which led to price pressure in the industry. In addition, the recent burdens in the e-cigarette industry also had a negative impact.
Recently, Canopy Growth, like so many others in the industry, had disappointed with weak quarterly results. Canopy reported a 13% increase in losses to $282 million (CA$374.6 million) or $0.81 (CA$1.08) per share for the past quarter.
However, the market had only expected a loss of $0.31 (CA$0.41) per share. Although turnover increased from $17.55 million (CA$23.3 million) to $57.71 million (CA$76.6 million) compared to the same period last year, this also fell short of analysts’ expectations, who had forecast an increase to $68.26 million (CA$90.6 million).
Bank of America recommends to “buy”
The Bank of America’s “buy” recommendation was met with a massively oversold market. DER AKTIONÄR had already recently reported that this alone could lead to a larger counter-movement, which was now also to be observed.
Yesterday’s rise in Canopy’s share price sounds like a lot, but the share is still a long way from a liberation blow.
DER AKTIONÄR, however, shares the opinion of the Bank of America that Canopy Growth is quite clearly one of the most interesting long-term stocks in the industry. However, the cannabis industry is still only suitable for very risk-averse investors.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Hemp.im, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in DER AKTIONÄR, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Hemp.im assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Hemp.im is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.