Cannabis Watch: Analysts see no lift for downbeat cannabis stocks from Chuck Schumers bill
An ambitious and long-awaited cannabis bill from Senate Majority Leader Chuck Schumer is unlikely to pass and will not likely stoke interest in U.S. cannabis stocks, analysts say.
While the formal introduction of the Cannabis Administration and Opportunity Act (CAOA) this week has drawn some praise, it landed with a thud on Wall Street.
The AdvisorShares Pure US Cannabis ETF MSOS, -0.51% fell about 2% on Thursday, the day Schumer unveiled the bill. Its down 53.2% in 2022, compared to a drop of about 24% by the Nasdaq. The index was up 0.5% in early trades on Friday.
We continue to outline a negative bias to public cannabis equities, Stifel analyst W. Andrew Carter said Friday in a research note.
He reiterated a buy rating on WM Technology MAPS, -5.00% and hold ratings on GrowGeneration Corp. GRWG, -4.21%, Hydrofarm Holdings HYFM, -4.23% and Scotts Miracle-Gro SMG, -1.24% as beneficiaries of the current environment.
We believe this legislation has no prospects of success with modest reforms still possible during this Congress, but extremely unlikely, Carter said. We
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