An analyst at Cantor Fitzgerald dropped their bearish stance Wednesday on Canadian consumer cannabis company Hexo Corp (NYSE: HEXO).
The Hexo Analyst: Pablo Zuanic upgraded Hexo Corp. from Underweight to Neutral and increased the price target from CA$0.90 (67 cents) to CA$1.25 (93 cents).
The Hexo Thesis: Toronto-listed shares of Hexo are down about 37% since their June 8 peak compared to a 16% decline for the Canadian MJ index, Zuanic said in a Wednesday morning note.
The weakness stemmed from an equity offering and partial bond conversion, the analyst said.
Hexo showed strong underlying sales trends in the April quarter and improving profitability, he said. The cannabis company has a strengthening balance …