Brand New Weed Stock Lands First Bull Note

Sundial Growers went public earlier this month

Weed producer Sundial Growers Inc (NASDAQ:SNDL) is shooting higher this morning, already up 1.1%, at $9.75. Behind the surge is Cowen and Company, which initiated coverage with an "outperform" rating and $20 price target. The firm said the company has "displayed evidence of responsible corporate spending," referring to its break-even second-quarter. Cowen looks to be the first brokerage firm to initiate coverage on the stock.

SNDL began trading publicly this past Aug. 1, and entered at $13.01, on par with the planned initial public offering (IPO) price of $13. The shares have struggled to maintain positive ground, but are 13.4% higher month-to-date, regardless.

Elsewhere in the weed sector, Canopy Growth Corp (NYSE:CGC) also received bullish attention, with Seaport Global Securities upgrading its stance to "buy" from "neutral" and setting a $31 price target. CGC shares were last seen trading at $24.85. Most other analysts are bullish, too, with nine of 14 in coverage handing out "buy" or "strong buy" recommendations.