Finance

Is Canopy Growth’s stock expected to rise again?

Canopy Growth has seen trouble but the stock for the Canadian company has undergone a strong turnaround in recent weeks. Recently the stock had reached a new 52-week low result. However, since then the share has been on a recovery course and is showing better results. Canopy Growth has suffered from "industry-wide challenges" over the past year and has seen these issues affect the stock.

Canopy Growth’s stock has recovered significantly over the past few weeks, even temporarily hitting the important $22 (CA$30) mark. Now the stock is also receiving support from analysts. The analysts of BMO have upgraded Canopy Growth’s stock from “Market Perform” to “Outperform.”

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Investors still show interest in Canopy Growth’s stock

The price target was even raised from $18 (CA$25) to $30 (CA$40.) This represents a price potential of around 40% compared to the closing price in Toronto. The share can easily increase before the stock exchange reopens.

Although the sector remains highly speculative, there are investors still interested in Canopy Growth stock. (Source)

In the meantime, slight optimism has returned to the market. Analyst Vivien Azer of the investment house Cowen & Co, now sees the sometimes feared scenario of a strict crackdown on cannabis by the U.S. federal government as becoming increasingly unlikely.

People’s approval of legalization has never been higher, so the Trump government would probably not be doing itself any favours by taking a hard line against cannabis. According to a CBS survey, around 65% of adults in the U.S. in 2019 were in favor of legal cannabis which equals a record high.

Investors who followed the recent “Buy” recommendation on Canopy Growth’s stock are letting the profits run. Things get exciting on Feb. 14, when Canopy Growth will publish its figures for the third quarter of the fiscal year 2020. However, the sector remains highly speculative and is therefore only suitable for very risk-averse investors.

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(Featured image by  Jason Briscoe via Unsplash)

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This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.

First published in Der Aktionär, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Hemp.im assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Hemp.im is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.

J. Frank Sigerson

J. Frank Sigerson is a business and financial journalist primarily covering crypto, cannabis, crowdfunding, technology, and marketing. He also writes about the movers and shakers in the stock market, especially in biotech, healthcare, mining, and blockchain. In the past, he has shared his thoughts on IT and design, social media, pop culture, food and wine, TV, film, and music. His works have been published in Investing.com, Equities.com, Seeking Alpha, Mogul, Small Cap Network, CNN, Technology.org, among others.

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