Cannabis stocks have been on fire since last summer, and the buzz continued today as a major financier joined the industry.
Early leader Tilray (TLRY) might have fallen asleep after a blistering rally in September, but others have lit up more recently. Aurora Cannabis (ACB) glowed green today, ripping 12 percent to a five-month high.
The rally came after famed investor Nelson Peltz joined the pot grower as a strategic adviser. The CEO of Trian partners isn’t known for cannabis. But he has a history with major brands like Snapple, Wendy’s and Quaker Oats.
Peltz’s move came barely a week after Cowen initiated ACB with “outperform” rating. Analyst Vivien Azer said the company will “drive leadership” in the emerging industry. Her $14 price target is still 57 percent above the current $8.93 price.
ACB isn’t the only stock on the move. GW Pharmaceuticals (GWPH), a biotech developing cannabinoid prescription medicines, is about 18 percent in the last month. Strong earnings on February 26 drove the move.
Innovative Industrial Properties (IIPR), which rents out greenhouse space, has also climbed 17 percent.
Other well known companies in the space, like Cronos (CRON) and Canopy Growth (CGC), have gained about 8 percent in the last month. Those gains aren’t huge, but still well ahead of the broader S&P 500.
In conclusion, money keeps flowing into cannabis as the industry continues to gain mainstream acceptance.