HEXO stock has been on an upward swing since April 17th when bullish calls from Bank of America pushed HEXO Corp (TSX:HEXO) (NYSE:HEXO) higher by 11%. The gains have continued—today stock is up roughly 2% at the time of writing.
Selling for $6.76 USD on the NYSE American, investors have been bullish about Canada’s HEXO Corp for quite some time. This recent analyst call caused a stir, but there’s more where that came from.
HEXO Stock: Bullish Calls From BofA
Last week, shares of HEXO Corp received a healthy push from the Bank of America. The Canadian cannabis producer was given significant backing by BofA analyst Christoper Carey.
Not only did the analyst give HEXO stock a ‘buy’ recommendation, but he also set a price target of $10 per share. This target represents 66% above the share’s closing price the day prior. The bullish sentiment was then driven home when Carey named the company as a “top pick in cannabis.”
But Bank of America isn’t the only analyst to consider HEXO stock a ‘buy’. In recent, months, the company has received several bullish calls in its favor.
Seaport Global initiated coverage of the company in February and rated these shares a ‘buy’. Oppenheimer mirrored that sentiment with their ‘Outperform’ rating.
Further, according to MarketScreener, HEXO stock has an average price target of $10.06 CAD and an average consensus of ‘Outperform’ across 14 analysts.
Why the Bullish Calls?
It’s hard to ignore a cannabis play that is receiving high industry praise. So should you get on these shares while they are still relatively low-priced?
With a market cap of $1.4 billion USD at present, HEXO stock shows a “relatively low valuation,” according to Cory Renauer of The Motley Fool. Already climbing over 70% in 2019, these shares—selling at $6–$7 in recent weeks—still represent a fair price that could be considered undervalued.
Featured Image: Canva