Global  

Celebrating 10 Years of Trusted News Discovery
One News Page
> >

Roth Capital Partners maintains Buy rating, $10 price target for cannabis company Hexo Corp

Proactive Investors Friday, 14 June 2019
Roth Capital Partners on Friday maintained its Buy rating and $10 price target for Hexo Corp (TSE:HEXO)(NYSEAMERICAN:HEXO), a day after the Canadian cannabis company reported fiscal third-quarter results. But Analyst Scott Fortune lowered his revenue and earnings forecasts for Hexo, calling the company’s 3Q earnings “soft.” Hexo, based in Gatineau, Quebec, reported net revenue of US$13 million, while Fortune expected US$15.7 million. The company also missed on adjusted gross profit — US$6.4 million versus an expected US$7.5 million. READ: HEXO sees huge revenue jump in the third quarter but still misses estimates As a result, Fortune wrote that he’s reducing his fiscal year 2019 revenue forecast by US$4.2 million to US$59.6 million, while maintaining his fiscal year 2020 forecast for US$63.8 million in revenue. Despite lowering his revenue forecast, Fortune remains optimistic that Hexo “will gain market share in becoming a large tier” licensed producer. “Although soft quarterly results, management reiterated FY20 guidance of $400M revenues and remains committed to break even in the FY20 timeframe,” he wrote. Fortune noted that Hexo should benefit from entering the US market (eight states) with its CBD products and vape sales as well as increase annual production of cannabis up to 150,000 kilograms, “which justifies the doubling in revenue guidance in our opinion.” CIBC downgrade In related news, according to the Fly, CIBC Capital Markets analyst John Zamparo downgraded Hexo to Neutral from Outperformer, saying he doubts the company can achieve US$400 million in revenue in fiscal 2020. He lowered his price target to C$8.50 from C$9.50  Hexo’s stock recently traded down 4.2% to US$5.65 a share on the NYSE and fell 3.1% to C$7.57 in Toronto. Within the last 12 months, ROTH has received compensation for investment-banking services from Hexo. Contact the author: [email protected] Follow him on Twitter @PatrickMGraham
0
shares
ShareTweetSavePostSend
 
Credit: The Street - Published < > Embed
News video: Jim Cramer on What to Watch in FAANG

Jim Cramer on What to Watch in FAANG 02:05

What should investors be eyeing with FAANG now? Jim Cramer breaks down what he's watching in the FAANG stocks as the House Judiciary Committee kicks off their hearing on big tech. Here's what he's keeping a close eye on: Facebook : MoffettNathanson put out a bullish note on Facebook early...

You Might Like


Recent related videos from verified sources

Google Stock Hasn't Done Much in 2019 -- Will Earnings Change That? [Video]Google Stock Hasn't Done Much in 2019 -- Will Earnings Change That?

With Google shares trailing both large-cap tech peers and the broader U.S. market for 2019, investors are looking for something to boost Google from here. Google is well positioned to beat on..

Credit: The Street     Duration: 02:09Published

The Time For TV Performance Is Now: TVSquared’s Kinsella [Video]The Time For TV Performance Is Now: TVSquared’s Kinsella

What does $150 million get you in ad-tech these days? If you are the new-look LiveRamp, it gets you Data Plus Math - the price which the reconstituted Acxiom is reportedly paying for the Boston-based..

Credit: BeetTV - Affiliate     Duration: 03:38Published

Medallia CEO on Going Public and the Path to Profitability [Video]Medallia CEO on Going Public and the Path to Profitability

Another day, another IPO. Medallia , which is a cloud-based customer experience company, went public Friday, July 19. The company priced at $21 Thursday night. Its first trade Friday morning was..

Credit: The Street     Duration: 04:46Published

Microsoft's Foot Still on the Peddle [Video]Microsoft's Foot Still on the Peddle

Sure, Microsoft beat earnings expectations on the back of another strong quarter from the cloud. But check out the following three facts that should get any tech investor excited. Higher Price..

Credit: The Street     Duration: 00:54Published


Recent related news from verified sources

Gold Resource Corp reiterates full year production guidance for Mexican mines as it reports 2Q numbers

Gold Resource Corporation (NYSEMKT:GORO) has reiterated the full production guidance for its Mexican mines of 27,000 ounces of gold and 1.7 million ounces of...
Proactive Investors

ICC International Cannabis to supply New Zealand’s NUBU with pharmaceutical THC, CBD products

ICC International Cannabis Corp (CSE:WRLD.U) (OTCMKTS:WLDCF) said Thursday that it has inked an exclusive supply and commercial rights agreement with medical...
Proactive Investors

Buds & Duds: Cannabis stocks lag as multistate operator Curaleaf cautioned for unsubstantiated claims

Cannabis indices were down on Tuesday after news that the largest multistate operator in the US could face legal action after allegedly claiming that its CBD...
Proactive Investors

ROTH Capital Research repeats Buy rating, $6.50 price target Gold Resource Corp shares following recent second quarter update

ROTH Capital Research has reiterated a Buy rating and $6.50 price target on shares in Gold Resource Corporation (NYSEMKT:GORO) following the miner’s recent...
Proactive Investors


Other recent news in Business

The JUSTICE DEPARTMENT’s surprise 'reveal' of a Big Tech investigation was highly unusual, and it could actually turn out to be good news for the tech giants (AMZN, AAPL, GOOGL, FB)U.S. Justice Department opens antitrust investigation of tech companies
Environmentally friendly: One News Page is hosted on servers powered solely by renewable energy
© 2019 One News Page Ltd. All Rights Reserved.
About us  |  Contact us  |  Disclaimer  |  Press Room  |  Terms & Conditions  |  Content Accreditation
 RSS  |  News for my Website  |  Free news search widget  |  In the News  |  DMCA / Content Removal  |  Privacy & Data Protection Policy
How are we doing? FeedbackSend us your feedback  |   LIKE us on Facebook   FOLLOW us on Twitter  •  FOLLOW us on Pinterest
One News® is a registered trademark of One News Page Ltd.