Company News

BUZZ-Hexo Corp's gross margin concerns could put pressure on shares - Oppenheimer

** Oppenheimer downgrades U.S.-listed shares of Canadian cannabis producer to “perform” from “outperform”; stock down ~4% at $5.15

** Co expects some “turbulence” on gross margin in the short term due to pricing pressure - HEXO CEO said earlier this month

** This could put pressure on shares - Oppenheimer

** Brokerage cuts gross margin forecast for fiscal 2020 and 2021 in the low-mid 40s compared to previous forecast in ~50s

** HEXO not focused on medical cannabis, which tends to have more profitability - Brokerage

** However, brokerage says it still sees many positives to the HEXO story in the long term and that co should remain on the radar for investors

** Up to Monday’s close, stock had risen ~3% this year (Reporting by Arundhati Sarkar in Bengaluru)