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Seaport Global issued a fairly bearish note on Canadian cannabis stocks and the industry as a whole, saying it sees headwinds for the market amid growing supply.

Hexo  (HEXO) - Get HEXO Corp. Report and Canopy Growth (CGC) - Get Canopy Growth Corporation Report were downgraded to neutral from buy, while Aurora Cannabis (ACB) - Get Aurora Cannabis Inc. Report and Tilray (TLRY) - Get Tilray, Inc. Report were reiterated with neutral ratings. The firm maintained its buy rating on Aphria (APHA) - Get Aphria Inc Report .

Seaport's rating for Green Organic Dutchman (TGODF) is still under review pending news on the company's efforts to garner funding. 

"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. We expect pricing and margins to drop considerably," analysts Brett Hundley and Luke Perda wrote. 

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Hexo fell 5.53% to $2.39, while Canopy Growth declined 2.37% to $18.97. Aurora Cannabis was down 3.5%, Green Organic Dutchman fell 1.1% and Aphria shares declined 2.1%. Tilray shares were rising 0.72%. 

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