February 25, 2019 / 11:18 AM / 8 months ago

BUZZ-Weed stocks: Jefferies issues bullish view but "not all at the party"

** Jefferies initiates coverage on nine cannabis cos, says winners to be those that lead in both medical and recreation, and have a strong U.S. position

** Brokerage sees further consolidation in industry, more fast moving consumer goods (FMCG) taking positions

** Initiates ‘buy’ rating on Aurora Cannabis, Green Organic Dutchman, CannTrust and OrganiGram

** Initiates ‘hold’ rating on Canopy Growth and Emerald Health Therapeutics

** The market is taking larger capacity or certain deals as a validation of superior fundamentals, Jefferies says

** Several major cos from Molson Coors, Constellation and Anheuser-Busch have pursued cannabis deals last year

** Brokerage says bull case on cannabis industry would represent a greater risk for alcohol; believes the normalization and socialization of cannabis could recruit new consumers and pose a threat to the alcohol industry

** The ETFMG Alternative Harvest ETF, which includes U.S.- and Canada-listed marijuana producers, fell ~23 pct in 2018 after gaining ~21 pct in 2017 (Reporting by Karina Dsouza in Bengaluru)

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