"All Eyes On the US Opportunity"
... . Piper Sandler noted Canopy expects to legally enter US THC markets in C21,
The brokerage said Republican states with existing cannabis programs make up 19 votes, so change is possible,
but it would expect regulation to support industry banking to precede federal legalization.
21 hours ago by MT Newswires
02:31 PM EST, 02/10/2021 (MT Newswires) -- Piper Sandler, with a Neutral rating on Canopy Growth (WEED.TO, CGC), in a note of overnight Tuesday noted Canopy Growth traded at near 20 times its C22E sales, and the brokerage does not see upside to valuation based on fundamentals -- though, it said, retail investor enthusiasm could still push shares higher. Piper Sandler noted Canopy expects to legally enter US THC markets in C21, but also noted it could still be challenging to get 60 votes in the Senate needed to legalize US marijuana. The brokerage said Republican states with existing cannabis programs make up 19 votes, so change is possible, but it would expect regulation to support industry banking to precede federal legalization. Piper Sandler raised its F22E sales from near C$770 million to near C$815 million on non-marijuana sales, and maintain its US$27 PT.