Canadian consumer packaged goods cannabis company HEXO Corp. (HEXO) has partnered with U.S. digital marketing and brand management company REQ.
Under the partnership, HEXO’s continued expansion in the U.S. and the growth initiatives of its joint venture with Molson Coors will be assisted by REQ.
REQ will also support HEXO’s potential partners in non-beverage consumer packaged goods, with whom the company is in discussions.
HEXO CEO and co-founder Sebastien St-Louis said, “REQ has become well-known for working with some of the world’s most recognized brands and companies, and we are thrilled to join forces with their award-winning team to help accelerate the growth of our Powered by HEXO technology and other U.S.-based market opportunities.” (See HEXO Corp stock analysis on TipRanks)
Recently, Canaccord Genuity analyst Matt Bottomley reiterated a Hold rating on the stock and set a $7.84 price target (28.9% upside potential).
Commenting on the acquisition of Zenabis Global by HEXO, Bottomley said, “We believe the key value driver of this acquisition rests in HEXO’s ability to increase its market share from the #4 position in Canada to #3 (behind Aphria and Canopy).”
Bottomley added, “Although we believe the ability to access international markets could provide longer-term optionality, in our view the abundance of licensed infrastructure that can potentially export out of Canada poses a headwind to the ultimate value these assets might derive.”
Consensus among analysts is that HEXO is a Hold based on 3 Buys, 6 Holds, and 1 Sell. The average analyst price target of $8.74 implies 43.7% upside potential. Shares have gained about 216% over the past year.
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