Recently, many of Canada’s publicly-traded licensed cannabis producers reported earnings, causing market corrections across the board. From Cronos Group Inc. (NASDAQ:CRON) (TSX:CRON) to CannTrust Holdings Inc. (NYSE:CTST) (TSX:TRST), many investors expected more from the financials with the Canadian recreational market in full swing.
This, combined with a recent meeting with Tilray Inc. (NASDAQ:TLRY) management has led Vivien Azer to the conclusion that Canada’s cannabis market is suffering from supply constraints in the near-term.
Vivien Azer, Cowen’s managing director and senior research analyst specializing in beverages, tobacco, and cannabis sectors, tempered Wall Street’s expectations for the sector while reiterating her Outperform ratings on Aurora Cannabis Inc. (NYSE:ACB) (TSX:ACB), Canopy Growth Corp. (NYSE:CGC) (TSX:WEED) and Tilray, and her Market Perform rating on Cronos.
According to TheFly, “Azer lowered her revenue estimates throughout her Canadian cannabis coverage as her current read suggests that Q1 growth will likely be modest.”
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