HEXO Corp (HEXO) received a Buy rating and a $7 price target from Oppenheimer analyst Rupesh Parikh today. The company’s shares closed on Friday at $5.58.
Parikh noted:
“We are initiating coverage of HEXO with an Outperform rating. HEXO is a branded cannabis producer and consumer products company based in Quebec, Canada. We overall look favorably upon the early efforts by the HEXO management team in developing a foundation to become a leading global CPG player within the cannabis category. These include: 1) establishing an attractive Canadian infrastructure; 2) partnering with leading CPG player, 3) early success with new innovations. Over time, we believe this foundation could help the company become a leading global cannabis player. Given the significant uncertainty on the developing competitive and regulatory backdrop, we view our recommendation and an investment in the space as more speculative in nature, at least compared to other CPG verticals.”
According to TipRanks.com, Parikh is a 5-star analyst with an average return of 16.0% and a 65.4% success rate. Parikh covers the Services sector, focusing on stocks such as Blue Apron Holdings Inc, United Natural Foods, and Wal-Mart Stores Inc.
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Based on HEXO Corp’s latest earnings release for the quarter ending October 31, the company reported a quarterly GAAP net loss of $9.83 million. In comparison, last year the company had a GAAP net loss of $7.08 million.
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HEXO Corp. engages in the manufacture, production, and distribution of medicinal marijuana. It offers products through the Time of Day, H2, Decarb, and Exlixir No. 1 brands. The company was founded by Sébastien St. Louis and Adam Miron on August 13, 2013 and is headquartered in Gatineau, Canada.
