Canopy Growth Corporation (CGC:NSD) Analysts rate with a Underperform, $9 target

STA Research
by: STA Research

Based on the Canopy Growth Corporation stock forecasts from 13 analysts, the average analyst target price for Canopy Growth Corporation is USD 9.16 over the next 12 months. Canopy Growth Corporation’s average analyst rating is Under-perform. Stock Target Advisor’s own stock analysis of Canopy Growth Corporation is Bearish, which is based on 2 positive signals and 5 negative signals. At the last closing, Canopy Growth Corporation’s stock price was USD 4.88. Canopy Growth Corporation’s stock price has changed by -0.64% over the past week, -0.83% over the past month and -81.30% over the last year.

Today’s Analyst Ratings on Canopy Growth:

Cowen lowers the target tp $5, keep the Buy rating.
STA Research reiterates the Hold rating, with a $7 target.
Stifel Nicolaus cuts the target to $4, keeping the Sell rating.
Morningstar reiterates their Buy rating with a $16 target on the cannibas stock.

Canopy Growth Corporation and its subsidiaries produce, distribute, and sell cannabis and hemp-based products for recreational and medical reasons in Canada, the United States, and Germany, principally in Canada, the United States, and Germany. Global Cannabis and Other Consumer Products are the two segments in which it works. Tweed Marijuana Inc. was the company’s previous name until September 2015, when it changed to Canopy Growth Corporation. The Canopy Growth Corporation is based in Smiths Falls, Ontario, Canada.

 

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.

 

CFRA reiterated Canopy Growth Corporation stock with a Hold rating at a $10 target

 

What we don’t like:

Poor risk-adjusted returns

This company is delivering below median risk-adjusted returns to 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 the 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 cash flow

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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