One of the most impactful trends that we have been following in the cannabis sector is related to the activity at the broker-dealer level. When an analyst changes their rating or price target on a company, the market responds, and we find this to be significant.
2020 has already proven to be a busy year for the cannabis sector and we are barely into February. Today, we want to highlight 5 rating or price target changes that were announced in January by leading broker-dealers.
- January 30th : The Scotts Miracle-Gro Company (SMG) received an upgrade from SunTrust Robinson after it reported better than expected fourth quarter financial results. The broker-dealers raised the price target on Scotts to $125 from $120 and maintained a Buy rating on the provider of lawn and garden and indoor growing products.
- January 29th: Canopy Growth Corporation (WEED.TO) (CGC) received an upgrade from the Bank of Montreal (BMO). The broker-dealer upgraded the Canadian cannabis producer from Market Perform to Outperform and raised the price target to $40 from $25. The market responded favorably to the upgrade and this is an opportunity to be aware of.
- January 29th: MediPharm Labs (LABS.TO) (MEDIF) was downgraded by Canaccord Genuity after it announced plans to sue a leading Canadian cannabis producer for failure to pay. The broker-dealer cut its price target to $6.75 from $7.75 and maintained its Speculative Buy rating. Two days earlier, PI Financial cut its price target on MediPharm to $7.25 from $8.50
- January 9th: Aurora Cannabis (ACB.TO) (ACB) sent shockwaves through the cannabis market after it was downgraded by Piper Sadler. The broker-dealer downgraded the Canadian cannabis producer to Underperform from Market Perform and lowered the price target to $1 from $3
- January 8th : High Tide Inc. (HITI.CN) (HITIF) had its price target lowered to $0.40 from $0.45 by Canaccord Genuity. Following the downgrade, the Canadian cannabis retailer announced two strategic investments, and this is an opportunity that we are following.