Bank of America Initiates Cannabis Coverage, Names Top Three Picks

Today the Bank of America (Merrill Lynch) began covering cannabis stocks, a solid signal the sector is being accepted by US investors. Their analyst, Christopher Carey, made HEXO their number one pick.

Bank of America Cannabis Stocks

Other cannabis stocks that got a buy recommendation were Canopy Growth and Aurora. Bank of America is also covering Cronos, but rated it as underperforming.

Cannabis stocks coverage by a major bank like Bank of America indicates we’re on the verge of lots more money moving into this sector. A key thing to watch for is cannabis stocks that uplist or open on the New York Stock Exchange or NASDAQ.

Why No US Cannabis Operators were Picked by Bank of America

Most mainstream analysts are just getting to know the cannabis industry, so they are sticking with the big names that they feel won’t get them in trouble. In time, we’ll see Bank of America, Cowen and others learn enough about the industry to realize that the US market is ten time bigger than Canada’s, and that the big money will be made by American cannabis companies.

For details on this story, see Bank of America Cannabis Stocks Coverage.

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