Cannabis Analysts From Piper Sandler, Jefferies, Cowen Owen Bennett, a tobacco and cannabis analyst at Jefferies, said he’s amazed at the amount of Canadian licensed producers that “didn’t do the basics right.”
For consumer product goods companies, this means forming segmented brands, understanding what the consumer wants and keeping control of costs, the analyst said.
Aphria and Organigram stand out among others in this respect, he said.
Institutional Investments In Cannabis: Bennett said
“However, I think to go really bullish you need to see increased [long-term] institutional investment. With that I’m actually more optimistic than I was 12 month ago,” said Bennett.
Institutional investors are eyeing the cannabis industry with more interest, according to Azer.
This interest tends to favor companies that are already profitable and have become so consistently, like the aforementioned Green Thumb Industries, Cresco and Aphria APHA, she said.
Piper Sandler’s Lavery also said the cannabis landscape is attracting more institutional investors.
“Once you’ve seen some of these winners and a separation in how companies are performing, it makes it a lot easier to feel more comfortable investing in a space that you feel like you can get your hands around how it’s going to play out and how companies are positioned,” the analyst said.
Aphria Inc. (APHA)
4.92 0.00 (0.00%)
| 5/13/20 | Cantor Fitzgerald | Maintains | Overweight | 9.6 |
| 5/08/20 | Cantor Fitzgerald | Maintains | Overweight | 9.9 |
| 4/16/20 | CIBC | Maintains | Neutral | 6.0 |
| 4/16/20 | Stifel | Maintains | Hold | 5.3 |
| 4/16/20 | B of A Securities | Reiterates | Buy | 7.0 |
| 4/15/20 | Cantor Fitzgerald | Maintains | Overweight | 9.0 |
| 4/01/20 | Cantor Fitzgerald | Maintains | Overweight | 9.3 |
| 3/19/20 | B of A Securities | Upgrades | Buy | |
| 3/10/20 | Stifel | Initiates Coverage On | Hold | 4.5 |
| 1/23/20 | B of A Securities | Maintains | Neutral | 8.0 |