Cannabis stocks made some headway on Friday, ending a week to forget for marijuana investors across North America.
The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada moved 2.3% higher to 130.4 points. Elsewhere, the Horizons Marijuana Life Sciences Index ETF inched 0.4% higher to C$10.54, while the OTCQX Cannabis Index rose 2.8% to 495 points.
Pot companies were largely quiet on Friday but a number of companies saw a move to the green.
CannaRoyalty Corp (CSE:OH) was up 3.6% at C$5.42 on Friday morning in Canada, a gain of C$0.19.
Despite the relative peace in the cannabis sector, many of the larger players saw their share prices trading lower on Friday morning.
HEXO Corp (TSE:HEXO) (NYSE:HEXO) continued its nightmare week, falling another 4.7% to trade at C$3.58 in Toronto and 5.4% in New York at US$2.69.
Roth Capital Partners analysts lowered its price target on HEXO stock to US$2.85 and slashed its rating to Neutral following the cannabis company’s warning that it would miss profit estimates.
“HEXO echoed other industry leading LPs in calling out the substantial lack of consumer access to legal cannabis, primarily due to the limited number of brick and mortar retail stores,” Roth analyst Scott Fortune wrote in a note on Thursday afternoon.
Fortune wrote that Canada’s most populous province, Ontario. has played “political football” with cannabis, as it has changed its retail store roll-out strategy a number of times on the fly and is still extremely limited in the total number of store licenses.
“In our view, the Canadian black market remains robust, and nearly a year after legalization, the industry is in the process of re-setting the overall legal consumption demand,” Fortune wrote.
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