Barclays initiates coverage of Tilray, Cronos and Canopy Growth

Barclays analyst Guarav Jain on Thursday initiated coverage of three cannabis stocks but said their businesses are limited by the relatively small size of the legal market in Canada. Barclays launched overage of Tilray and Cronos with an underweight rating and price targets of $10 and $5.50 respectively. Barclays also initiated coverage of Canopy Growth with a price target of $14 and a equal weight rating. Canada will account for about 30% of Canopy’s and Tilray’s operating enterprise value, and about 40% for Cronos. “The rest of their enterprise value is attributable to optionality in the U.S. market”…