Canopy Growth (CGC) Price Target Raised at Garnier, Bullish Comments

Canopy Growth (NYSE: CGC) PT is being raised at Garnier to CAD$95.00 (from CAD$51.00).

The analyst comments "With Constellation Brands’ capital injection of approx. CAD14.5bn over the next three years, Canopy Growth is in pole position in the race for global domination of the USD250bn cannabis market (2027e). We raise our fair value for the company to CAD95 per share (from CAD51). We believe that the extra cash will give Canopy Growth the means to build its own bottling and canning line for the cannabis based beverages; further funding for the medical research programmes and facilities; organic and acquisitive expansion in the 30 countries pursuing a federally permissible cannabis programme. Furthermore, the ultimate price is likely to be domination in the United States once the federal ban on cannabis is lifted (Canopy Growth has currently no operations in the country). At a recent analyst day we learned that the company is not only planning to be a disruptive force in the market for social lubricants, currently dominated by alcohol, but also in a number of fields for human and animal health. In the coming six months, the company is likely to launch 15 human health clinical trials (mostly in the fields of sleep, mood and pain) and is conducting pre-clinical animal health studies (on anxiety)."

You May Also Be Interested In

• Cannabis Market Flourishes Amid Global Legalization, Driving Concerns About Road Safety
• Amphenol (APH) PT Raised to $130 at Evercore ISI, Remains Top Pick
• BofA Securities Starts GE Vernova (GEV) at Neutral, 'Multiyear turnaround amid positive demand backdrop'