Investment bank Canaccord Genuity has reportedly suspended research coverage of 15 cannabis companies following an analyst departure. The suspension affects major Canadian cannabis producers, including Aurora Cannabis Inc., Canopy Growth Corp., and Tilray Brands Inc., as well as several US marijuana companies.
If true, the suspension would remove a significant voice from cannabis equity research. Industry observers have described Canaccord as a leading underwriter in cannabis capital raising since the sector’s emergence.
The bank was scheduled to host its ninth annual Global Cannabis Conference later this year.
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Cannabis stocks have struggled in recent years as major licensed producers lost market share to smaller competitors. Canadian cannabis companies have also faced challenges from high taxes, oversupply, and difficulty accessing capital.
Several financial firms have reduced cannabis coverage as the sector grapples with profitability challenges. The industry has seen numerous company failures and bankruptcies in Canada over the past two years.
The loss of analyst coverage typically means fewer research reports and price targets for investors to reference when making investment decisions.
Cannabis stocks remain covered by other firms, including Jefferies, Cowen, and Cantor Fitzgerald, though overall analyst coverage of the sector has declined significantly since 2018-2019.
The Canadian legal cannabis market was valued at $3.25 billion in 2024 and is projected to reach $5.79 billion by 2030, according to industry research.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
