Analysts rate Canopy Growth Corp with a consensus Underperform rating and a 12-month average target price of $7.13 per share.
Bank of America Securities maintained Canopy Growth Corp with an Underperform rating and slashed the target price to $2.4 from $10 on the company’s stock.
CIBC lowered the target price on Canopy Growth Corp to $2.70 from $9, and maintained the Underperform rating.
Based on the Canopy Growth Corp stock forecasts from 17 analysts, the average analyst target price for Canopy Growth Corp is USD 7.13 over the next 12 months. Canopy Growth Corp’s average analyst rating is Under-perform. Stock Target Advisor’s own stock analysis of Canopy Growth Corp is Bearish, which is based on 2 positive signals and 7 negative signals. At the last closing, Canopy Growth Corp’s stock price was USD 2.81. Canopy Growth Corp’s stock price has changed by -25.86% over the past week, -34.95% over the past month and -87.93% over the last year.
What we like:
High market capitalization
This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.
Underpriced compared to book value
The stock is trading low compared to its peers on a price to book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.
What we don’t like:
Poor risk adjusted returns
This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.
The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.
Below median dividend returns
The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.
The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.
The company had negative total cash flow in the most recent four quarters.
Negative free cash flow
The company had negative total free cash flow in the most recent four quarters.
Low Earnings Growth
This stock has shown below median earnings growth in the previous 5 years compared to its sector.
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