Cannabis stocks rose for the first time in three sessions Friday, reversing some of this week’s losses that were driven by disappointing earnings with Aurora Cannabis ACB, +5.64% ACB, +5.37% leading the pack with a 5% gain.
Market leader Canopy Growth shares CGC, +3.40% WEED, +3.35% were up 3.2%, but remain down 14% on the week. The stock fell after posting a more than a billion Canadian-dollar loss for its latest quarter and revenue that fell short of estimates. Benchmark analyst Mike Hickey cut his price target to C$60 from C$100 and said the numbers were disappointing.“With the global cannabis market not achieving the presumed near term growth opportunity for WEED, we suspect investors are now favoring disciplined growth and a path to profitability, both of which WEED has not demonstrated,” said the analyst.
“Sentiment on Flowr is not great at the moment,” said Jefferies analyst Ryan Tomkins. “Their premium proposition in Canada is still yet to be proven, while investors have also expressed a concern around the recent decision to buy 100% of Holigen .”
You mesn they’re going up in smoke?