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.
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.
Scroll down to see more of my posts.
Disclaimer: All material in this blog and its pages is provided for informational purposes only and does not constitute financial advice. The administrator, members and posters do not accept liability for your use of the posts, comments, pages or any other content of this blog, which is provided on an “as is” and “as available” basis, without any representations, warranties or conditions of any kind.