More analysts perspective TOP ANALYSTS LOVE CANOPY GROWTH
This piece would not be complete without our third stock, Canopy Growth (CGC). In just one year shares in CGC, the world’s largest cannabis stock by market cap, have doubled. Now if you look at all the analyst ratings received by CGC over the last three months, the stock shows a cautiously optimistic Moderate Buy consensus.
But if we include only those ratings published by best-performing analysts, the consensus shifts to Strong Buy. In fact, CGC has received five consecutive buy ratings from top-performing analysts in the last three months. And if we look at the Canadian ticker TSE:WEED, that’s with an average analyst price target of C$83, for upside potential of just over 30%.
What’s more CGC’s most recent rating comes from Martin Landry of GMP FirstEnergy. This is one of the Top 20 analysts ranked by TipRanks out of over 5,190 analysts thanks to his savvy stock picking skills. He reiterated his buy rating on CGC with a C$72 price target- having upgraded the stock from Hold to Buy in April following the news that CGC has acquired the rights to snap up organic cannabis company Acreage Holdings.
As far as the Street is concerned, this deal provides CGC with a straightforward “path for the U.S. cannabis market.” Landry himself writes “This transaction should boost Acreage’s ability to consolidate the U.S. market.” That means “when Canopy officially takes ownership of Acreage, it could be much larger than currently.”
The analyst has now returned from a very insightful tour of the company’s activities in British Columbia (BC), including both the company’s Aldergrove and Delta facilities.“The BC greenhouses appear to be running smoothly across all areas of production, trimming and drying,” the analyst commented- silencing rumors of dead cannabis plants that have plagued CGC since a video back in 2018 purported to show total crop failure at Aldergrove.
According to Landry, “The facilities are ramping up production with only 400k sq. ft. of greenhouse currently unlicensed, the application for which has been submitted. With a number of harvests already under the belt, the ramp up focus is on increasing yields and shortening cycle time. WEED expects it can achieve an equivalent of over four harvests per year. Canopy has trimming and drying capacity to handle the full production of the BC Tweed facilities.” He believes Canopy’s BC facilities could eventually produce 300 tonnes of cannabis annually, with a production cost of $0.50/ per gram.
With the stock showing such strong momentum, CGC also sports a 10/10 from TipRanks’ Smart Score, despite Very Negative sentiment from investors
https://www.smarteranalyst.com/cannabis-stock/top-story/analysts-have-chosen-gwph-apha-and-cgc-are-top-cannabis-stock-picks/