Cannabis Producer Hexo Falls on Analyst Downgrade

M. Corey Goldman - finance.yahoo.com Posted 4 years ago

dropped on Tuesday after the company received a downgrade from Oppenheimer on what the research firm believes is greater gross margin pressure than initially expected. In a research note to clients, Oppenheimer analyst Rupesh Parikh said he was downgrading the stock to perform from outperform mainly because he now sees the shares as more fairly valued following the company's acquisition of Newstrike Brands. Hexo acquired Newstrike Brands in March in an all-stock deal valued at roughly C$263 million ($197 million).

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