The Globe and Mail reports in its Tuesday, Feb. 26, edition that though it initiated coverage of the cannabis sector with a bullish view, Jefferies Financial Group expects increased consolidation in the industry and further moves by major consumer goods companies to take positions.
The Globe's David Leeder writes in the Eye On Equities column that Jefferies gave "buy" ratings to Aurora Cannabis (with a $12 share target), Green Organic Dutchman Holdings (with a $6.10 target), CannTrust Holdings (with a $15 target) and OrganiGram Holdings (with a $10 target). Jefferies gave "hold" ratings to Canopy Growth (with a $64 target) and Emerald Health Therapeutics (with a $4.30 target). Meanwhile, Cronos Group was given an "underperform" rating under the belief there is little to get excited about with the stock beyond Altria Group's investment.
Jefferies said, "We also question when Altria value creation will begin to materialise, especially as there appears little near-term appetite to put the Altria money to work."
The stock was given a $17 target, which falls below the average of $19.57.
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