Canopy Growth Corp Stock Forecast:
According to the stock predictions made by 15 analysts, the estimated average target price for Canopy Growth Corp is CAD 4.24 in the next 12 months. On average, the analysts’ rating for the company is “Hold”. However, Stock Target Advisor‘s own analysis of Canopy Growth Corp is “Bearish”, supported by 1 positive signal and 7 negative signals. Currently, the stock price of Canopy Growth Corp is CAD 3.04 after its last closing. In the past week, the company’s stock price has decreased by 22.65%, over the past month by 14.61%, and in the last year by 74.04%.
Analyst Coverage Change:
Bank of America Merrill Lynch maintains Canopy Growth Corporation with a Sell rating and lowers the target price to $2.05 from $3 on the company’s stock.
Positive Fundamentals:
Canopy Growth Corporation (CGC) is a leading player in the cannabis industry and has a large market capitalization, which is a measure of a company’s size and reflects the total value of all its outstanding shares of stock. The high market capitalization of Canopy Growth Corp. makes it one of the largest companies in its sector, which puts it in a position of strength and stability compared to its peers.
Having a large market capitalization can be a sign of financial stability and growth potential, as it indicates that a company has a broad base of investors who believe in its future prospects. Companies with high market capitalizations are often well-established and have a proven track record of success, which can make them attractive to both individual and institutional investors. This stability can provide a degree of protection during market downturns, as the company’s size and reputation can help it weather any economic challenges.
However, a high market capitalization is not a guarantee of success, and it is important to look at other factors such as a company’s financials, management, and future growth prospects before making an investment decision. But overall, the high market capitalization of Canopy Growth Corp. is a positive factor that suggests stability and potential for growth in the future.
Negative Fundamentals:
Canopy Growth Corp. is a stock that has attracted attention due to its high volatility and its below-median returns over the past five years. The total returns for this company are above median for its sector, which means that there is a lot of risk involved for those who choose to invest in it. This is why it is important for investors to have a high risk tolerance before considering investing in this stock.
One of the challenges associated with Canopy Growth Corp. is its low dividend returns, which are below median compared to its peers. This may not be a concern for investors who are not looking for income from their investments, but it is something to keep in mind for those who are looking for a steady source of income.
Another issue is that the stock is overpriced compared to its book value, which means that it may be trading at a higher price compared to its peers. This could be due to the high demand for the stock, but it also means that there is a higher risk involved.
The company is highly leveraged, which means that it has a high debt to equity ratio compared to its peers. This is something to keep an eye on, as it could indicate that the company is trying to grow aggressively. However, it is important to look at the news and the management statements of the company to get a better understanding of its financial position.
In addition, Canopy Growth Corp. has shown negative cashflow and negative free cash flow in the most recent four quarters. This is not a positive sign for the company’s financial health and stability.
Finally, the stock has shown below median earnings growth in the previous 5 years compared to its sector, which is another factor to consider for those who are looking for a stock with strong growth prospects. In conclusion, Canopy Growth Corp. is a stock with high volatility and a range of challenges that investors need to consider before making an investment decision.
FA Score (Fundamental Analysis):
The fundamental analysis of Canopy Growth Corp. is “Bearish” with a FA score of 1.2 out of 10, where 0 is very bearish and 10 is very bullish.
