Recently, Canopy Growth (WEED) (CGC) announced its deal to acquire Acreage Holdings. The deal is contingent on the US legalizing cannabis at the federal level. Following the update, Canopy Growth stock rose nearly 20%.
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Based on Canopy Growth’s acquisition of Acreage Holdings, Jefferies raised its target price on the company to 77 Canadian dollars from 64 Canadian dollars. According to Jefferies, Acreage Holdings will enable Canopy Growth to enter the US, which has a huge potential for cannabis companies.
Jefferies also raised its target price on Aurora Cannabis (ACB) to 14 Canadian dollars from 12 Canadian dollars. According to Jefferies, it increased the target price due to the company acquiring Whistler Medical. Also, Aurora Cannabis has been experiencing a strong growth trend.
Currently, analysts’ consensus rating for Canopy Growth is a “buy” with a target price of 75.9 Canadian dollars. Canopy Growth was trading ~1% higher at 65.7 Canadian dollars when the market opened.
Analysts gave a consensus “buy” rating on Aurora Cannabis with a target price of 14.2 Canadian dollars. Aurora Cannabis was also trading ~1% higher when the market opened. Among other cannabis companies (MJ), Innovative Industrial Properties (IIPR) rose 1.1%, while CannTrust (CTST) rose ~5.6% in the early morning.