Seaport Global downgraded Canadian cannabis companies Hexo Corp. HEXO, +2.10% HEXO, +1.16% and Canopy Growth Corp. CGC, -0.70% CGC, -1.06% to neutral from buy on Monday, and reiterated neutral ratings on Aurora Cannabis Inc. ACB, -2.88% ACB, -1.88% and Tilray Inc. TLRY, +0.84% , leaving Aphria Inc. APHA, +0.23% APHA, +0.71% as the only buy-rated Canadian cannabis company in its coverage. "We see a headwind for the Canadian cannabis market, ahead, based on sizable industry supply that will aim to funnel into a limited retail store set," analysts Brett M. Hundley and Luke Perda wrote in a note to clients. "We expect pricing and margins to drop considerably." The analysts said their model, rating and price target for Green Organic Dutchman TGODF, -1.89% TGOD, are under review, pending news on its efforts to get fresh financing. In the U.S. multi-state operator space, the analysts "see a completely different set of circumstances in place, and we would broadly recommend that investors rotate away from Canada and towards the US," they wrote. "We do not think that recent vape headlines will materially cut into forward MSO financials, and we see a number of opportunities for public MSOs on the horizon." Canopy shares were down 0.8% in premarket trade, while Hexo was down 4.7%. The ETFMG Alternative Harvest ETF MJ, +0.48% was up 1.1%, but has fallen 25% in 2019, while the S&P 500 SPX, +1.59% has gained 18%.