What happened Marijuana stocks are lighting up in Wednesday afternoon trading, with shares of Aurora Cannabis (NYSE: ACB) and Aphria (NASDAQ: APHA) both gaining 4.8% through 1 p.m. EDT, and Hexo (NYSE: HEXO) surging more than twice as much, up 11%. You can thank Bank of America for that. Image source: Getty Images. So what Early this morning, Bank of America resumed coverage on a trio of the best-known marijuana stocks: Aurora Cannabis (which is up today), Tilray (NASDAQ: TLRY) (which is merging with Aphria, sending that stock up), and Canopy Growth (NASDAQ: CGC). Curiously, BofA was most positive about Canopy's chances, resuming coverage of the stock with a buy rating and a prediction that the stock will hit $36 a share within a year -- a 28.5% gain from its current stock price of about $28. As StreetInsider.com reported today, BofA thinks that Canopy's "balance sheet, mgmt team and partnerships position CGC well to enter the US if there is federal legalization ... [and that] CGC's improving EBITDA and cash flow make its shares attractive in the meantime." But BofA feels broadly positive about the rest of the marijuana industry as well, sparking a stock price rally across the sector. As TheFly.com just reported, BofA believes the United States is on track toward legalizing marijuana use at the federal level (a thesis I agree with, by the way), although the timeline for such legalization still remains uncertain. Now what Given the uncertainty about timing, however, investors might want to give special consideration to some of the reservations Bank of America expressed, despite its broad optimism about the marijuana industry. In particular, the analyst highlights Tilray's low cash balance (the company actually carries more debt than it has cash available to pay it with) as a concern, as well as its "lack of a major CPG investment partner," notes TheFly. Aurora Cannabis is in a similar position, debt-wise, which probably explains why, out of the three stocks on which Bank of America resumed coverage today, Aurora was the only one tagged with a rating lower than buy. Even if Aurora, Aphria, and Hexo are the stocks gaining the most from Bank of America's comments today, Canopy Growth is still the marijuana stock Bank of America likes best. 10 stocks we like better than Aurora Cannabis Inc.When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Aurora Cannabis Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Rich Smith has no position in any of the stocks mentioned. The Motley Fool recommends HEXO Corp. The Motley Fool has a disclosure policy.Source