SNDL - Cronos group and Tilray stock trade higher as analysts weigh in on Hexo's latest acquisition

Canada-based cannabis players including Tilray ([[TLRY]] +3.4%), Cronos Group ([[CRON]] +15.0%), Sundial Growers ([[SNDL]] +14.7%) and Aurora Cannabis ([[ACB]] +5.5%) are all trading sharply higher today after HEXO ([[HEXO]] +7.8%) agreed to acquire Redecan in a transaction valued at $925M.The analysts from Cantor Fitzgerald and BMO capital markets offered divergent views on the deal.Maintaining his neutral rating on HEXO, Cantor Fitzgerald analyst Pablo Zuanic predicts the acquisition could propel the company to become the largest player in the Canadian market.However, citing among other things the market’s oversupply, Zuanic has slashed the price target to C$10.00 from C$11.25 due to what he identified as “sectoral derating.”Meanwhile, BMO’s Tamy Chen calls Redecan a “gem business.” Maintaining her outperform rating, Chen thinks that with today’s announcement HEXO has completed its M&A spree after three acquisitions announced over the past several months.In March, HEXO agreed to acquire 48North Cannabis in an all-stock deal valued at $50M

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Cronos group and Tilray stock trade higher as analysts weigh in on Hexo’s latest acquisition