Analysts rate Canopy Growth Corp(WEED:TSX) with a Hold rating and a $8 average target price

STA Research
by: STA Research

Analysts rate Canopy Growth Corp with a consensus Hold rating and a 12-month average target price of $8.60 per share.

Based on the Canopy Growth Corp stock forecasts from 14 analysts, the average analyst target price for Canopy Growth Corp is CAD 8.60 over the next 12 months. Canopy Growth Corp’s average analyst rating is Hold . Stock Target Advisor’s own stock analysis of Canopy Growth Corp is Slightly Bearish, which is based on 3 positive signals and 5 negative signals. At the last closing, Canopy Growth Corp’s stock price was CAD 3.26Canopy Growth Corp’s stock price has changed by -2.98% over the past week, -33.20% over the past month and -86.80% 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.

Superior risk adjusted returns

This stock has performed well, on a risk adjusted basis, compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile.

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:

High volatility

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.

Highly leveraged

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.

Negative cashflow

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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