The hype around the cannabis industry is still very real, according to the latest report from Desjardins Securities.
Analyst John Chu stated in his report released Friday that investors are looking at the market opportunity from a global perspective — “Which is huge — rather than simply a Canadian one.”
The analyst coverage looked at Aurora Cannabis Inc. (ACB-T),Canopy Growth Corp. (WEED-T) and HEXO Corporation TSX: HEXO, OTCQB: HYYDF, Forum), looking at their potential with the consumer packaged goods (CPG) market in the U.S. and overseas.
The report stamped HEXO with a “buy” rating and a $14 target, stating it stands out with the most upside potential and a cheaper current valuation. He also gave Aurora a “buy” rating, though he left Canopy with a “hold” rating.
He noted that issues around production, quality control, packaging and distribution will continue to cause growing pains for many companies in this market.
FULL DISCLOSURE: HEXO Corp. is a client of Stockhouse Publishing.