GMP Cautions Investors
Amid the chorus of upgrades for Canopy Growth (WEED)(CGC) this morning, GMP Securities decided to take an opposite stance, cautioning investors with a downgrade to “hold” from “buy.” GMP believes Canopy Growth’s valuation doesn’t justify its growth expectations for revenue, which may take longer. GMP was particularly concerned about the company’s bottom line or profitability. It added that, among its coverage universe of cannabis stocks, Canopy Growth would be the last with positive profitability.
Canopy Growth received price target upgrades from four firms—Canaccord Genuity, Cormark Securities, CIBC, and PI Financial. Together, these four companies’ price target upgrades represented an average 12% increase in the price target.
While Canopy Growth started this morning on a positive note, as of 11:50 AM ET, the stock was trading nearly 3% lower. Its peer (HMMJ) Aurora Cannabis (ACB) was trading 0.75% lower while HEXO Corp. (HEXO) was trading 0.14% lower. In Contrast, Cronos Group (CRON) and Aphria (APHA) were up nearly 1.5%.
To learn more about Canopy Growth’s analysts’ recent upgrades, see PI Financial, CIBC, Cormark Upgrade Canopy Growth Price Targets.