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Buds & Duds: Cannabis stocks cruise flat; Cronos shares soar on coveted double upgrade

Also on the move were True Leaf, MedMen, TILT and Tilray

cannabis flower
Cronos shares jumped after the company earned a rare double upgrade from analysts at Bank of America Merrill Lynch

Cannabis stocks flatlined Wednesday, with shares broadly flat across US and Canadian markets.

The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada, was up 0.2% to 246.4 points on Wednesday. The Horizons Marijuana Life Sciences Index ETF inched up 0.1% to C$18.80. 

READ: OTC Markets Group launches its own Cannabis Index

Yesterday, OTC Markets Group Inc (OTCQX:OTCM) announced it has launchied the OTCQX Cannabis Index that will track the performance of 30 companies trading on the OTCQX Best Market. On Wednesday, the OTCQX Cannabis Index nudged up 4% to close at 790.6 points. 

Buds

A number of cannabis stocks bucked the trend and outperformed on Wednesday. 

Leading the pack was Cronos Group Inc (NASDAQ:CRON) after earning a rare double upgrade from analysts at Bank of America Merrill Lynch. According to a published report by TheStreet, analyst Christopher Carey upgraded the cannabis company to Buy from Underperform. He boosted his price target to $20 from $13, a 39% premium on its Tuesday close.

Shares jumped 11.6% to C$21.58 on the TSX and 10.9% to US$15.99 on the Nasdaq.

READ: Cronos Group shares pop on rare double upgrade Bank of America Merrill Lynch analyst

Other gainers on Wednesday included True Leaf Brands Inc (CSE:MJ) (OTCQX:TRLFF) (FSE:TLA), which announced Wednesday it is expanding further into the European market. The Vernon, BC-based company said it has secured distribution agreements with OSCAR Pet Foods in the UK and with Pocurull in Spain and Portugal.

Shares were up 2.3% at C$0.44 in Toronto. 

Duds

A number of stocks were lagging on Wednesday.

TILT Holdings Inc (CSE:TILT) (OTCMKTS:SVVTF) shares continued to slide, after weakness earlier in the week. Shares were down 6.3% at C$1.34 in Toronto.

Last month the firm released its 2018 financial statements, showing a net loss of US$552.1 million. The company reported revenues for the year of US$5.65 million. The firm offers same-day delivery for retailers, wholesalers and consumers in four states.

Tilray Inc (NASDAQ:TLRY) shares also dropped on Wednesday, down 2.5% at US$35.59 in New York.

MedMen Enterprises Inc (CSE:MMEN) (OTCQX:MMNFF) shares continued to slide on Wednesday, on the back of the firm's third-quarter earnings results, which were posted late last week, which didn’t meet analyst estimates. 

LA-based MedMen reported revenue of US$36.6 million, versus analyst expectations of US$49.2 million. It reported a net loss of US$63.1 million, reflecting a share loss of US$0.20. In the year-ago quarter, the loss stood at US$18.4 million.

Shares slipped 1.1% at US$1.92 in New York. 

Contact Katie Lewis at [email protected]

Quick facts: Cronos Group Inc

Price: 7.065 USD

NASDAQ:CRON
Market: NASDAQ
Market Cap: $2.43 billion
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Buds & Duds: Cannabis stocks back in the red but make gains overall...

The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada, sank 4.4% at 123 points. Elsewhere, the Horizons Marijuana Life Sciences Index ETF lost 5.8% to C$9.55, while the OTCQX Cannabis retreated 4% at...

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