Canopy Growth Upgraded To A Street High of $72 CAD/Share

Momentum in Canopy Growth Corp (TSE:WEED) (NYSE:CGC) (FRA:11L1) shows no sign of abating. Already trading up ↑84.26% over the past thirteen trading sessions after receiving a huge equity injection from Constellation Brands Inc., a prominent Wall St. firm has elevated their price target once more.

This morning, Cowen & Co. analyst Vivien Azer raised her price target on Canopy Growth Corporation to a ‘Street High’ C$74 from C$56. Commenting on the reason for the upgrade, Mrs. Azer stated, “We recently hosted meetings with WEED’s management team and we walked away more constructive on WEED’s ability to establish an early lead in the adult use cannabis market, as well as domestic and international medical cannabis markets.”

Now, it seems that Mrs. Azer is stating the obvious with this commentary. It’s already well known that Canopy Growth owns the biggest brands and has among the broadest reach of any cannabis LP in Canada. Most importantly, the company will possess a $5 billion dollar war chest once the Constellation Brands deal closes in October. Once Canopy Growth starts putting that to good use, the distance between them and their top peers—which is still relatively close—should widen significantly.

As such, I’m not sure Cowen & Co.’s research note really offers anything interesting or novel to the conversation. However, as the leading U.S. investment bank covering the North American cannabis sector, this price target raise will play nonetheless. Canopy Growth is currently higher by $4.28 to $63.92/share (↑7.18%). Cannabis sector FOMO continues to run on overdrive.

Today’s upgrade marks the third time Cowen has raised their target this year. In early January, the target was raised to $44/share with Canopy Growth trading in the low thirties. Following the Constellation Brands deal, the investment bank upped their target to $56/share. And now—just two-and-a-half weeks later—Cowen’s target rises ↑28.57% to $72/share.

At this rate, we may start seeing $100/share calls by early 2019.

Original article: Canopy Growth Upgraded To A Street High of $72 CAD/Share

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