BMO Financial Downgrades Canopy Growth Corp. (CGC:NSD) to an Under Perform rating.

STA Research
by: STA Research

BMO Financial Downgrades Canopy Growth Corp to an Under Perform rating.

Barclays maintains Canopy Growth Corp with an Underweight rating and lowers the target price to $3.50 from $6 on the company’s stock.

Based on the Canopy Growth Corp stock forecasts from 16 analysts, the average analyst target price for Canopy Growth Corp is USD 0.00 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 5 negative signals. At the last closing, Canopy Growth Corp’s stock price was USD 4.24Canopy Growth Corp’s stock price has changed by -14.69% over the past week, -28.98% over the past month and -83.47% 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.

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.

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.

Negative cashflow

The company had negative total 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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