Today, President Donald Trump tweeted, Good things are happening at China Trade Talk Meeting. Warmer feelings than in recent past, more like the Old Days. I will be meeting with the Vice Premier today. All would like to see something significant happen! This tweet appears to have increased optimism among investors, driving the US stock market up. At 2:00 PM EDT, the S&P 500 Index and the Dow Jones Industrial Average were both up by 1.7%.Despite the surge in the broader equity market, the cannabis sector showed a mixed performance today.
The Jefferies downgrade appears to have dragged the companys stock down. Today, CGC hit a 52-week low of 25.82 Canadian dollars. At 1:44 PM EDT, the company was trading at 25.99 Canadian dollars, which implies a fall of 4.3% from its previous days closing price.
Earlier this month, Piper Jaffray, Compass Point, and CIBC also lowered their price targets for CGC stock. For more on these analysts ratings, please read Canopy Growth: Analysts Provide Target Price and Ratings.
Today, Jefferies upgraded OrganiGram Holdings (OGI) from hold to buy. However, the investment firm cut its price target for the stock from 10.50 Canadian dollars to 8.20 Canadian dollars. The new price target represents an upside potential of 127.1% from OGIs October 10 closing price.
The Jefferies upgrade appears to have led OrganiGram stock to rise. At 1:45 PM EDT, the company was trading 9.7% higher. For analysts ratings on OGI, please read OrganiGram: Analysts Target Price and Ratings.
After falling 9.3% yesterday, Aurora Cannabis (ACB) was trading 2.2% lower today at 1:46 PM EST. Today, Jefferies lowered its price target on ACB from 14 Canadian dollars to 7 Canadian dollars.
Jefferiess new price target represents an upside of 41.1% from the companys October 10 closing price. The slashing of its price target by 50% appear to have led to a fall in Auroras stock price. This year, Aurora has lost 26.8% of its stock value as of October 10.
However, the company continues to focus on preparing for the second phase of legalization in Canada. For more, please read Cannabis 2.0: Auroras Focus on Edibles.
Yesterday, Hexo (HEXO) reported lower-than-expected preliminary revenue for the fourth quarter of fiscal 2020. The company also withdrew its guidance for fiscal 2020. Its lower-than-expected revenue led Hexo stock to fall by 23% yesterday. Today, the companys stock fell again by 6.4% at 1:46 PM EDT.
Following the withdrawal of its revenue guidance today, Eight Capital downgraded the stock from buy to neutral, and it slashed its price target from $12 to $3.
Today, Cormark Securities and Canaccord Genuity also lowered their price targets. Eight Capitals downgrade and analysts lowering their price targets appear to have led to a fall in the companys stock price. However, Jefferies upgraded the stock from underperform to hold.