KushCo stock falls after Benchmark downgrade on concerns vaping-related lung illness will hurt sales
Benchmark downgraded the shares of Californian cannabis company KuschCo Holdings Inc. to speculative buy from buy on Friday, and said it expects the still unexplained vape-related lung illness that has killed at least 33 people and sickened 1,479 more to weigh on financial performance. Analyst Mike Hickey cut his stock price target to $5 from $7 and said “elevated regulatory risk” is another potential pressure for the maker of vapes, packaging and other accessories. The stock has fallen 75% in 2019, while the ETFMG Alternative Harvest ETF has fallen 20% and the S&P 500 has gained 19.6%. “We are positive longer term, as we note the vast majority of the THC related vape illness has come from black market; which could accelerate legal cannabis market regulation,” the analyst wrote in a note to clients. “Near term, we are cautious over potential bans on the sale of vaping products, as was the view from Massachusetts that has enacted a 4-month block of all sales of e-cigarettes and supplies, including those for nicotine and cannabis.” KushCo shares were down 0.8% in early trade.
Source : MTV
