Barclays initiates coverage of Tilray, Cronos and Canopy Growth

Barclays expert Guarav Jain connected Thursday initiated sum of 3 cannabis stocks but said their businesses are constricted by the comparatively tiny size of the ineligible marketplace successful Canada. Barclays launched overage of Tilray TLRY, -7.98% and Cronos CRON, -6.04% with an underweight standing and terms targets of $10 and $5.50 respectively. Barclays besides initiated sum of Canopy Growth CGC, -4.26% with a terms people of $14 and a adjacent value rating. Canada volition relationship for astir 30% of Canopy's and Tilray's operating endeavor value, and astir 40% for Cronos. "The remainder of their endeavor worth is attributable to optionality successful the U.S. market" done alliances with U.S.-based multi-state cannabis operators, helium said. "Canadian companies cannot straight put successful the US market. They are entering into structured transactions with U.S. multi-state operators that would person into number stakes upon U.S. national legalization. We deliberation the payment of these deals accrues to the shareholders of MSOs alternatively than those of the Canadian companies."