Canopy Growth’s catalysts
Canopy Growth (WEED) (CGC), the biggest cannabis producer in terms of capacity, released its earnings on August 14. The company experienced 63% year-over-year growth, but reported a net loss due to continued investments to capture the recreational cannabis market (MJ). Usually, when the company makes capital expenditures, earnings are expected to grow in the future.
With these positive catalysts, Canopy Growth received target price upgrades from four firms.
On August 15, PI Financial raised its target price for Canopy Growth to 60 Canadian dollars from 45 Canadian dollars. The increased target price translated into an increase of almost 33% from the previous target price. The stock, which was trading at 41.3 Canadian dollars as of August 16, has ~45% upside if the price converges with PI Financial’s target. The company has a “buy” rating on the stock.
On August 16, Canaccord Genuity increased its target price on Canopy Growth to 50 Canadian dollars from 34 Canadian dollars, which translates into a 47% increase from its previous target. The company also raised its rating to “speculative buy” from “hold.”
Next, we’ll discuss two more firms that raised Canopy Growth’s target price.