After a long period of negative news flow and stock performance, sentiment in the cannabis sector is “very low,” Ladenburg Thalmann analyst Glenn Mattson tells investors in a research note. After participating in a number of cannabis conferences, the analyst believes the biggest contributor to the negative backdrop has been the flat lining of growth in Canada. This is mainly a result of a poor retail footprint, only 25 stores in the nation’s largest province, Ontario for instance, versus more than 300 in Alberta, according to Mattson. Adding to this negative backdrop are expectations that acquisitions done at much higher levels will lead to goodwill write-downs, adds the analyst. However, he points out that goodwill write-downs are not always viewed as a negative from a stock performance perspective. While the news flow continues to be negative, a resumption of better growth as reported by the Canadian government “holds some promise while we await Cannabis 2.0,” says the analyst. 2.0 refers to the second wave of cannabis derivative products, such as edibles and beverages, that will begin to be available in Canada in December. Mattson lowered his price target for Canopy Growth (CGC) to $29 from $42, for Acreage Holdings (ACRGF) to $16 from $18, and for Aurora Cannabis (ACB) to $6 from $9. He keeps Buy ratings on all three stocks, however.