In a report released today, Rupesh Parikh from Oppenheimer maintained a Buy rating on HEXO Corp (HEXO), with a price target of $7. The company’s shares opened today at $6.18.
“We overall view the FQ2:19 results, new credit facility, and M&A announcement to acquire Newstrike Brands as positive steps toward HEXO’s efforts to become a leading player. On 3/13, the company announced plans to acquire a transaction valued at $263M. As we detailed in our initiation report titled, A Industry, modeling cannabis companies remains inherently challenging shorter-term. Overall, the Q2 delivery met our expectations, and management appeared very bullish on delivering its new FY20 revenue target of $400M inclusive of Newstrike. We believe investors should continue to focus on elements to drive a longer-term build, as it’s difficult to model the shorter-term ramp. Please see our initiation report for our latest views.”
According to TipRanks.com, Parikh is a 5-star analyst with an average return of 15.6% and a 65.9% success rate. Parikh covers the Services sector, focusing on stocks such as Blue Apron Holdings Inc, United Natural Foods, and Wal-Mart Stores Inc.
The word on The Street in general, suggests a Hold analyst consensus rating for HEXO Corp with a $7 average price target.
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The company has a one-year high of $7.17 and a one-year low of $2.64. Currently, HEXO Corp has an average volume of 1.62M.
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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.
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