Shares of HEXO (NYSE: HEXO) (TSX: HEXO) were jumping 6% higher as of 3:34 p.m. EDT on Monday after rising as much as 8.2% earlier in the day. The nice gain came after BMO Capital analyst Tammy Chen upgraded the marijuana stock to "market perform" from "underperform." Chen also assigned a price target of $1.30 Canadian (US$0.95), roughly 34% above HEXO's closing price on Friday.
Is HEXO a better pick merely because one analyst is more bullish about the stock? No. However, it's smart for investors to understand the reasons behind analysts' optimism.
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Source Fool.com