Why Canopy Growth, Cronos, Hexo, Sundial, and Tilray Stocks Are Plunging This Week
It's been a rough week so far for Canadian cannabis stocks. Shares of Canopy Growth (NASDAQ: CGC) were plunging 19.1% for the week as of the market close on Thursday, according to data from S&P Global Market Intelligence. Cronos Group (NASDAQ: CRON) stock was down 22%. Hexo's (NASDAQ: HEXO) shares were sinking 27.2%. And Sundial Growers (NASDAQ: SNDL) and Tilray (NASDAQ: TLRY) were falling 18.5% and 15.8%, respectively.
What's behind these big declines? Barclays (NYSE: BCS) analyst Guarav Jain initiated coverage on three of the marijuana stocks on Thursday. He assigned underweight ratings (the equivalent of a sell recommendation) to Cronos and Tilray. He gave an equal-weight rating (equivalent to a hold) to Canopy Growth. Jain said that the prospects for Canopy, Cronos, and Tilray are limited because of the relatively small size of the Canadian legal cannabis market.
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Source Fool.com
