Earlier this week, Alliance Global Partners reported eight price target increases on Canadian and US cannabis companies and this is a development that caught our attention.
From a breadth standpoint, we are favorable on the increases that were reported by the broker-dealer. The companies that were selected are diverse and we believe that this bodes well for the entire industry.
Today, we want to highlight 5 of the increases that were reported by Alliance Global Partners and believe that our readers need to be aware of the bank’s bullish view on the cannabis industry:
- KushCo Holdings Inc. (KSHB) had its price target raised to $2.50 from $2.00 (USD)
- Tilray Inc. (TLRY) had its price target raised to $18 from $10 (USD)
- Canopy Growth Corp. (WEED.TO) (CGC) had its price target raised to $41 from $32 (CAD)
- Village Farms Intl. (VFF.TO) (VFF) had its price target raised to $24 from $16 (CAD)
- HEXO Corp. (HEXO.TO) (HEXO) had its price target raised to $9.50 from $1.75 (CAD)
We are favorable on the upgrades that were reported by Alliance Global Partners and will monitor how the bank’s view opinion on the cannabis sector changes throughout the year. We believe the cannabis companies that were upgraded are quality plays on the legalization trend that is taking place on the global stage.
Over the next year, we expect to see more broker-dealers follow a path that is similar to Alliance Global Partners as it relates to price target hikes. Wall Street banks tend to operate in a heard like mentality and expect to see other banks issues price target increases on the cannabis sector.
The developments that are taking place in the US as it relates to cannabis legalization are expected to play a key role in the performance of the industry. Wall Street seems to be pricing in cannabis decriminalization in the US and we believe this would prove to be a game-changer for the entire sector.
If you are interested in learning more about the banks that are covering the US and Canadian cannabis industry, please send an email to email@example.com with the subject “US and Canadian Cannabis Industry” to be added to our distribution list.