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Canada’s legalization of marijuana rolls out this week, yet one analyst is warning that the “tail end of the cannabis rainbow may be approaching much faster than investors realize.”

Veritas Investment Research analyst Stuart Rolfe initiated coverage Friday on four of Canada’s largest cannabis stocks, carrying the only sell rating on each, saying “the market still lacks perspective when it comes to the size, shape and sustainability of Canada’s proverbial pot of gold.” He initiated coverage of Aphria (price target $19), Aurora Cannabis ($13), Canopy Growth ($30) and Cronos ($4.50) giving them all sell recommendations.

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Rolfe cites structural problems facing producers as the reason for his bearish view and points out uncertain pricing in the sector. “Canada’s eight largest listed firms are trading at more than 21x forward sales,” he writes, “assuming a 50 per cent EBITDA margin, their multiple reaches an incredibly expensive 42x 2020 EBITDA.”