The cannabis company recently launched on the NYSE
Canada-based HECO, the cannabis company that partnered with Molson-Coors last year to launch cannabis-infused beverages, was introduced on the NYSE last December. Traded under the ticker symbol HEXO (and also traded simultaneously on the Toronto Stock Exchange under the same symbol), it has since garnered a fair amount of attention and has continued strength that is becoming attractive to analysts. The future of the company looks bright, which has led several firms to suggest that now might be the time to invest in the stock.
Beacon Securities has reissued its “buy” rating for HEXO. Seaport Global Securities also gives the company a buy and set a target price of around $9.00. Oppenheimer and CIBC are on board, as well, saying that HEXO is going to “outperform” this year.
HEXO has always had a strong position, but the volatility of the marijuana stock market has left some investors a little uneasy. Given that it has a solid track record and renewed support from the top market analysts, now is a good time to embrace the stock.
The company is projected to have a six-figure yield this year, something most companies cannot claim. The capacity will ultimately be the measure of HEXO’s success as it tries to meet demand. While it’s having to compete against big names such as Aurora Cannabis and Canopy Growth, it is a much smaller organization with a lower market cap. However, given that it can maintain higher yields, the company shows that it is able to compete with the large companies.
On the NYSE, HEXO is currently trading at $5.82. This represents a 2.46% increase in the last day and is in line with its highest point in the past six months.