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HEXO Is Top Pick as Bank of America Initiates Cannabis Coverage

Tony Owusu

Bank of America analyst Christopher Carey has begun coverage of the cannabis industry with a note Wednesday naming Hexo Corp. Bank of America Merrill Lynch estimated that the Canadian cannabis supply will exceed domestic consumption by 2021, at which point it expects the market to become more mature. This will lead to more competition for shelf space, which gives HEXO an advantage due to its differentiated products, and price deflation.