Analysts rate Hexo Corp. (HEXO:CA:TSX) with an Under-perform rating and a CAD 0.5 target

Based on the Hexo Corp. stock forecast from 6 analysts, the average analyst Hexo stock price target is CAD 0.51 over the next 12 months. Hexo Corp’s average analyst rating is Under-perform. Stock Target Advisor’s own stock analysis of Hexo Corp. stock forecast is Bearish, which is based on 2 positive signals and 6 negative signals. At the last closing, Hexo stock price was CAD 0.27Hexo stock price has changed by -0.02% over the past week, -0.05% over the past month and -89.81% over the last year.

 

About Hexo Corp. (HEXO:CA:TSX):

HEXO Corp., through its subsidiaries, produces, markets, and sells cannabis in Canada. The company offers its adult-use and medical products under the HEXO brand name. It also provides cannabis beverages under the Little Victory, House of Terpenes, Mollo, Veryvell, and XMG brands; and cannabis products under UP Cannabis, Original Stash, and Up brand names. HEXO Corp. has a strategic alliance with Tilray Brands, Inc. The company was formerly known as The Hydropothecary Corporation and changed its name to HEXO Corp. in August 2018. HEXO Corp. was founded in 2013 and is headquartered in Gatineau, Canada.

 

Latest Analyst Ratings for Hexo’s stock:

Target Up ATB Capital Undeperform CAD 0.15 2022-06-16
Target Down CIBC Capital Markets Underperform CAD 0.2 2022-06-16
Target Down MKM Partners Hold CAD 0.25 2022-06-16
Downgrade Alliance Global Partners Neutral CAD 0.3 2022-06-15
Target Down ATB Capital Sector Perform CAD 0.8 2022-04-13
Assigns STA Research Buy CAD 1 2022-04-13
Target Down Jefferies Financial LLC Hold CAD 0.64 2022-04-11
Target Down CIBC Capital Underperform CAD 0.8 » CAD 0.7 2022-03-21
Maintains Scotiabank Capital Sector Perform CAD 1.1 2022-03-08
Upgrade ATB Capital Sector Perform CAD 1.1 2022-03-04
Target Down Jefferies Financial LLC Hold CAD 0.67 2022-01-27
Target Down MKM Partners Hold CAD 1 2021-12-31
Target Down ATB Capital Underperform CAD 0.8 2021-12-15
Downgrade CIBC Capital Underperform CAD 2 » CAD 0.8 2021-12-15
Target Down Canaccord Capital Reduce CAD 1 2021-12-15
Target Scotiabank Capital Sector Perform CAD 2.25 2021-11-08
Target Down ATB Capital Underperform CAD 1.5 2021-11-01
Target BMO Financial Market Perform CAD 2 2021-11-01
Reiterates CIBC Capital Markets Outperform CAD 5 2021-10-29
Target Down Alliance Global Partners Buy CAD 12 » CAD 5 2021-10-21
Maintains CIBC Capital Markets Outperform CAD 5 2021-10-19
Reiterated by CIBC Capital Markets Outperform 2021-09-24
Target Down CIBC Capital Markets NA CAD 5 2021-09-23
Target Down Jefferies  Underperform CAD 5.97 » CAD 2.54 2021-09-03
Target Down CIBC Capital Markets Outperform CAD 6 2021-08-23

 

 

What we like:

Underpriced compared to book value:

Hexo stock is trading low compared to its peers on a price to book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior Revenue Growth:

Hexo stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

 

What we don’t like:

Poor risk adjusted returns:

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns, the returns are unpredictable. Proceed with caution.

High volatility:

The total returns for Hexo stock are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Below median dividend returns:

The average income yield of Hexo stock over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Negative cashflow:

The company had negative total cash flow in the most recent four quarters.

Negative free cash flow:

The company had negative total free cash flow in the most recent four quarters.

Low Earnings Growth:

Hexo stock has shown below median earnings growth in the previous 5 years compared to its sector.