Looking for cannabis stocks? See the suggestions from Merrill Lynch

Sooner or later that would have happened. Many top cannabis companies are based in Canada, where they get more coverage, but Wall Street is starting to pay more attention to them. This is happening at a rapid pace, and the cannabis industry is starting to resemble the dot-com era in the mid-1990s. Considering this fact, it is quite possible that many of these companies will no longer be in the next five to ten years.

Merrill Lynch is one of those Wall Street mammoths that track the industry closely. Bank analysts remain optimistic about five cannabis companies by redeeming their Buy Buy shares.

Aurora Cannabis

The company made several acquisitions to other companies, thus expanding the business and reporting very good sales in the first quarter. Aurora Cannabis develops and distributes cannabis-developed products for medical purposes. The company has vertical integration and horizontal diversification across different segments of the chain such as: value creation in cannabis products, genetic development, research, production and development of cannabis products as well as their distribution and sales. Merrill has a price target of $ 10 for the company.

CannTrust

This is a company in the sector that is still outside the "radar" of investors. CannTrust Holdings manufactures and distributes medical products for pharmaceutical use in Canada. Sells dry cannabis and cannabis oil. The company works in partnership with Gold Coast University Hospital. CannTrust also focuses on the development of nanotechnology for the creation of new products for medical applications, in cosmetics, pet products. Merrill has a $ 8 target.

Canopy Growth

It is one of the largest companies in the sector in terms of market capitalization. Canopy grows, subsidizes, distributes cannabis products for medical use in Canada. The company's products are dry leaves, oils and concentrates as well as capsules. The company offers its products under the labels Tweed, Black Label, Spectrum Cannabis, DNA Genetics, Leafs by Snoop, Bedrocan Canada, CraftGrow and Foria.

Canopy also offers its products through Tweed Main Street. This is an online platform that allows registered patients to purchase such medical products. Merrill's target is $ 53 per share.

Cronus

In 2018, a major international company bought a stake in Cronus Group. It is a worldwide company founded in 2012 and based in Ontario, Canada, with presence on five continents.

In December, Altria bought a 45% stake in the company for about $ 1.8 billion. This was the first sign that the traditional tobacco industry is preparing to compete directly with the new cannabis wave. This strategic partnership gives Cronus additional financial resources, production and distribution opportunities. Merrill has a target of $ 19 per share.

Hexo

This is another company that is rapidly expanding into the cannabis sector. Hexo Corp is a diversified company selling various cannabis products. At this stage, the company is distributing its production in Canada, but it also aims to enter the international markets.

Hexo has partnered with Fortune 500 companies, and cannabis cultivation area covers 1.8 million square meters in Ontario and Quebec, as well as in Greece to start production and distribution in the Eurozone. Merrill's Target is $ 8.

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