CANOPY STOCK WILL GET A BOOST FROM CANADA’S ‘2.0 MARKET’ IN CANNABIS, ANALYST SAYS

  • Analyst Brett Hundley upgrades Canopy to buy from neutral and hikes his price target on the stock to $31 per share.
  • “Although regulatory development has been both disappointing and frustrating, there is no question that cannabis offers an attractive growth profile,” Hundley says in a note.
  • “In addition, the Canadian space is about to gain a fair amount of pricing power, in our view, as the 2.0 market opens up late this year.”

Canopy Growth stock will get a boost from Canada’s ‘2.0 market’ in cannabis, Seaport Global Securities said Monday in upgrading the stock.

Analyst Brett Hundley upgraded Canopy to buy from neutral and hiked his price target on the stock to $31 per share. That’s a 24.5% upside from Friday’s close of $24.89. The stock rose 0.6%.

“Although regulatory development has been both disappointing and frustrating, there is no question that cannabis offers an attractive growth profile,” Hundley said in a note Monday. “In addition, the Canadian space is about to gain a fair amount of pricing power, in our view, as the 2.0 market opens up late this year.”

The 2.0 market refers to Canada’s plan to let pot producers add popular vapes, edibles and infused beverages to be sold legally later this year. Currently, only dried cannabis flower, oil and sublingual’s sprays are legal for sale in Canada…

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