April 17, 2019 / 11:05 AM / 6 months ago

BUZZ-Aurora Cannabis, Canopy Growth: Bofa starts coverage with "buy"

** BoFA initiates coverage of Aurora Cannabis and Canopy Growth with “buy” rating

** Says Aurora is positioning itself as one of few truly global companies in the cannabis sector; Canopy is one of the few companies in pole-position to be a long-term leader in the global cannabis sector

** Says Aurora’s scale is especially attractive, due to low-cost production model, protecting margins even in an oversupplied market, and ability to serve a global market, where there is an undersupply of legal cannabis

** Says Canopy built scale in Canada early and has been laying groundwork to excel in other areas higher on the value chain

** Brokerage has of US$11/C$15 price objectives on Aurora; US$52/C$70 on Canopy

** Initiates coverage of Cronos at “Underperform”; with C$17/US$13 price objectives; says unable to get comfortable with valuation

** Up to Tuesday’s close, the Canadian Marijuana Index of 21 companies had fallen 24% (Reporting by Arathy S Nair)

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