Canopy Growth Corp (CGC) PT Raised to $3.30 at Cantor Fitzgerald

November 7, 2022 6:28 AM EST
Get Alerts CGC Hot Sheet
Price: $2.82 -4.41%

Rating Summary:
    2 Buy, 3 Hold, 5 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 7 | Down: 18 | New: 26
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Cantor Fitzgerald analyst Pablo Zuanic raised the price target on Canopy Growth Corp (NASDAQ: CGC) to $3.30 (from $3.05) while maintaining a Neutral rating.

The analyst commented, "We stay Neutral but increase our 12-month price target to US$3.30 from $3.05 due to the improved sentiment on the Canopy USA structure. Canopy Growth ("CGC") shares are up 44% since the close of 10/24 (the night before CGC announced plans to consolidate its US THC assets, which over the last 12 months have generated ~$320Mn in revenues, as per our estimates) vs. -1% for the S&P500 and +7% for the YOLO ETF (+4% MSOS ETF). We agree with what we see as investors' interpretation that CGC will push ahead with its plans, current NASDAQ pushback notwithstanding. In fact, we expect CGC to successfully close the transactions related to the newly formed Canopy USA structure in the year ahead, and eventually even consider delisting from NASDAQ (among other options), assuming the latter does not alter its current stance against listed companies consolidating US THC-plant-touching assets (a lot could happen in the interim). Based on TSX's public support of the Canopy USA ring fence structure, we believe the TSX would not delist CGC (note: institutions own less than 8% of CGC shares). A scenario of the NYSE being more flexible than NASDAQ seems improbable to us, but not impossible."

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