Cantor Raises Canopy Growth Target After September Quarter Print
Canopy Growth Corp’s (NYSE: CGC) is likely to be supported by growth in the Canadian recreation business, continued progress by the strategic units and improving profitability, according to Cantor Fitzgerald.
The Canopy Growth Analyst: Pablo Zuanic maintained a Neutral rating for Canopy Growth, while raising the price target from CA$28 to CA$29.
The Canopy Growth Thesis: Growth in the Canadian recreation business, strategic units and profitability should offset concerns around a potential slowdown in the international medical business, Zuanic said in the note.
“While recent increased reliance on the domestic value flower segment remains a concern for us, we realize the company is following a multi-pronged approach in Canada. Also, it benefits from operating several, rather profitable, non-cannabis businesses,” he wrote.
“Regardless of when cannabis becomes federally permissible in the US, we believe the company has several ways to continue to add value to the “optionality” it enjoys from its US “diversified ecosystem”,” the analyst noted.
He said that the relationship with Constellation Brands, Inc. (NYSE: STZ) goes beyond just the balance sheet.
Latest Ratings for CGC
Feb 2020 | Stifel Nicolaus | Maintains | Buy | |
Jan 2020 | BMO Capital | Upgrades | Market Perform | Outperform |
Nov 2019 | Bank of America | Upgrades | Neutral | Buy |
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