Canopy Growth (WEED:CA) Rated Hold after Earnings, Stock Rises

Canopy Growth Corp. stock is currently rated with a fundamental score of 1.4 out of 10, where 0 is very bad and 10 is very good.

Canopy Growth Stock Analysis:

The average analyst target price for Canopy Growth Corp over the next 12 months is CAD 6.45, according to 16 analysts’ predictions for the company’s stock. Hold is the average analyst recommendation for Canopy Growth Corp. Based on 1 good signals and 6 negative signals, Stock Target Advisor’s own stock analysis of Canopy Growth Corp. is Bearish. Canopy Growth Corp.’s stock was trading at CAD 4.24 at the most recent close. The share price of Canopy Growth Corp. has changed by -10.74% in the last week, +10.70% in the last month, and -73.79% in the last year.

Recent Analyst Ratings:

Analyst’s have just released research notes, updating their coverage of Cannabis growth as follows:

Sanford Bernstein assigned the stock with a Underperform rating and a $2  target price.

STA Research reiterated their Buy rating after earnings, and kept the $6.50 target steady on the stock.

Cantor Fitzgerald maintained the Hold rating, with a $4.45 target on the stock.

Finally, CIBC Capital Markets maintained the banks Underperform rating, and $3 target price for Canopy.

 

Canopy Growth Corporation (WEED:CA:TSX)

Together with its subsidiaries, Canopy Growth Corporation produces, distributes, and sells cannabis- and hemp-based products for leisure and medical uses, principally in Canada, the US, and Germany. The two business divisions are Global Cannabis and Other Consumer Products. Dried cannabis flower, extracts and concentrates, beverages, candies, and vapes are among the company’s offerings. Tweed, 7ACRES, 7ACRES Craft Collective, DOJA, Ace Valley, Quatreau, Deep Space, First + Free, Surity Pro, Spectrum Therapeutics, Vert, Tokyo Smoke, Tweed, Martha Stewart CBD, DNA Genetics, BioSteel, Storz & Bickel, This Works, HiWay, Simple Stash, Whisl, and Truverra are some of the brands under which it sells its goods. Tweed Marijuana Inc. was the company’s previous name until it changed to Canopy Growth Corporation in September 2015. Smiths Falls, Canada serves as the corporate headquarters of Canopy Growth Corporation, which was established in 2009.

 

News:

CEO of Canopy Growth Corp. has high expectations for the U.S. Senate and prospective cannabis legislation once the new government is formed. CEO, David Klein said that it  is abundantly clear that American citizens demand access to cannabis use legally. Klein reiterates he hopes the outcome of the midterm elections  increase pressure on the Senate to legalize cannabis.  However, many analysts believe that in order to reform drug laws, control of the senate by Democrats is a must. Most analysts confirm that they don’t believe Mitch McConnell as a majority leader, would support significant cannabis legislation changes.

The midterm elections could be a sign of how serious the country is about federally legalizing cannabis, according to Canopy and other Canadian cannabis companies that forecast significant profits from the U.S. market.

It was announced last month that Canopy Growth will establish  a new U.S. based company to hold its rights against U.S. cannabis companies that have home field advantage within the current cannabis legislation. Spokespersons for the Nasdaq has voiced concerns about Canopy combining its U.S. financial statements.  However, Canopy’s Klein reiterates he has support for the action by executives at the TMX Group.  If the Nasdaq doesn’t agree with Canopy’s move, the company could possibly face the delisting of it’s stock on the Nasdaq as a consequence.  Klein assures he is hopefully that the two sides will eventually concur with the situation amicably.

Quartely Earnings Results:

Canopy Growth, just revealed their quarterly earnings, showing a deficit for the quarter as revenue declined from the same quarter in the previous fiscal year.  Canopy Growth reported for the quarter that ended on September 30, a net loss of $231.9 million, or 47 cents per diluted share, against a  net loss of $16.3 million last year. For the three-month period, net revenue was $117.9 million, down from the $131.4 million, again from the same quarter of last year.

The company asserts that the decline in sales was brought on by tougher competition in the Canadian cannabis market.  The company’s earnings were also impacted by $2 million by labour strikes which occurred in the province of British Columbia and Quebec, in addition to the cyberattack on Ontario’s cannabis distributor which hampered sales also.

 

Canopy Growth’s Fundamental Stock Analysis:

Positive Fundamentals:

Substantial market capitalization.  This organization is one of the biggest in its industry and is in the top quartile. These businesses are more likely to be stable.

 

Negative Fundamentals:

Extreme turbulence.  This company’s five-year total returns have been erratic and higher above the industry average. Check your risk tolerance before investing in such a stock.

In excess of what the book value should be.  On a basis of price to book value, the stock is trading above the median of its peers.

Very leveraged.  In terms of debt to equity, the company performs poorly compared to its sector peers and has a high level of leverage. Check the news, though, and take a close look at the sector and management statements. Because the business is attempting to grow aggressively, this can occasionally be high.

Adverse cash flow.  In the most recent four quarters, the company’s overall cash flow was negative.

Free cash flow negative.  The company’s total free cash flow was negative over the previous four quarters.

Minimal earnings growth.  Compared to its industry, this stock’s 5-year median profits growth was lower.

Canopy Growth Corp. stock is currently rated with a fundamental score of 1.4 out of 10, where 0 is very bad and 10 is very good.

Analysts rate Canopy Growth Corp(WEED:TSX) with a Hold rating and a $6.50 target

Canopy Growth Corp Stock Analysis:

Analysts rate Canopy Growth Corp with a consensus Hold rating and a 12-month average target price of $6.78 per share.

The Crowd target for Canopy Growth Corp’s 12 month forecast is $15.55, with a Crowd rating of a Strong Buy for the stock.

Latest Analyst Ratings for Weed:

Just recently, STA Research maintained their Buy rating on the stock with a $6.50 target.   Morningstar Inc. also maintained their Buy rating on the stock with a $14 target. Barclays lowered the target to $2.75, and kept the Equal Weight rating for the company.

The average analyst target price for Canopy Growth Corp over the next 12 months is CAD 6.78, according to 15 analysts’ predictions for the stock. The consensus analyst rating for Canopy Growth Corp. is Hold. Canopy Growth Corp’s stock analysis by Stock Target Advisor is Bearish and is based on 1 positive and 6 negative signals. The stock price of Canopy Growth Corp. was CAD 3.24 at the most recent closing. The share price of Canopy Growth Corp. changed by -0.31% over the previous week, -15.40% over the previous month, and -80.40% over the previous year.

About Canopy Growth Corp (WEED:CA:TSX)

Together with its subsidiaries, Canopy Growth Corporation produces, distributes, and sells cannabis- and hemp-based products for leisure and medical uses, principally in Canada, the US, and Germany. The two business divisions are Global Cannabis and Other Consumer Products. Dried cannabis flower, extracts and concentrates, beverages, candies, and vapes are among the company’s offerings. Tweed, 7ACRES, 7ACRES Craft Collective, DOJA, Ace Valley, Quatreau, Deep Space, First + Free, Surity Pro, Spectrum Therapeutics, Vert, Tokyo Smoke, Tweed, Martha Stewart CBD, DNA Genetics, BioSteel, Storz & Bickel, This Works, HiWay, Simple Stash, Whisl, and Truverra are some of the brands under which it sells its goods. Tweed Marijuana Inc. was the company’s previous name until it changed to Canopy Growth Corporation in September 2015. Smiths Falls, Canada serves as the corporate headquarters of Canopy Growth Corporation, which was established in 2009.

 

News:

Canopy Growth Corp. has expanded the portfolio of its Ace Valley brand. These two brand-new, uniquely flavorful gummies( Lust Cherry Rose and Thrust Watermelon Goji), arethe first of their type on the Canadian market, celebrate the union of sex positivity and cannabis by enabling users to improve their own personal experiences.

Infused with 25 mg of CBD and 2.5 mg of THC per gummy, Ace Valley Lust Cherry Rose Gummies have a juicy flavour, herbal extracts, and the sweet, yet delicate flavour of cherry and rose petals. Each gummy also has a refreshing tongue tickle that awakens your senses.

Watermelons with Ace Valley Thrust Each Goji Gummy has 5mg of THC, a blast of watermelon flavour, a tingle of goji berry flavour, and a trace of naturally occurring caffeine.

According to Tara Rozalowsky, Vice President, Brand Marketing, Ace Valley “celebrates sex positivity, including those who are already integrating cannabis and sex, as well as those who are intrigued about it.” “Lust and Thrust gummies were developed with enjoyment in mind. Both products are a natural extension of Ace Valley’s creative portfolio, which enriches experiences and allows customers to use cannabis their way, on their terms.”

With Blackberry Lemon Dream, which was created with your nightly routine in mind, Ace Valley earlier this year released the first-ever CBN gummies in Canada. The launch of Lust and Thrust strengthens the brand’s dedication to intentional consumption and elevating the benefits of the plant.

 

Fundamental Analysis:

Positive Fundamentals:

This organization is among the top quartile and is one of the biggest in its industry. These businesses are typically more reliable.

Negative Fundamentals:

Over the past five years, this company’s total returns have been erratic and higher above the industry average. If you plan to invest in such a stock, be sure your risk tolerance is adequate.

Compared to book value, it is overpriced. On a price to book value basis, the stock is selling at a premium to the median of its peer group.

In terms of debt to equity, the company is heavily leveraged and in the bottom half of its sector rivals. Check the news, though, and study the sector and management remarks. This can be high at times since the business is attempting to grow quickly.

The last four quarters saw a negative total cash flow, and overall free cash flow for the organization.

Compared to its sector, this stock’s five-year median earnings growth was lower than average.

 

 

Analysts rate Canopy Growth Corp.(WEED:TSX) with a Hold rating and a target price of $7

Canopy Growth Corp Stock Analysis:

Analysts rate Canopy Growth Corp. with a consensus Hold rating and a 12-month average target price of $6.79 per share.

Based on the Canopy Growth Corp stock forecasts from 15 analysts, the average analyst target price for Canopy Growth Corp is CAD 6.79 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 Bearish, which is based on 2 positive signals and 6 negative signals. At the last closing, Canopy Growth Corp’s stock price was CAD 3.28Canopy Growth Corp’s stock price has changed by -22.64% over the past week, -31.09% over the past month and -80.07% 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.

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.

Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

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.

Analysts rate Canopy Growth Corp. (WEED:TSX) with a Hold rating and a target price of $7

Analysts rate Canopy Growth Corp. with a consensus Hold rating and a 12-month average target price of $7.12 per share.

Based on the Canopy Growth stock forecasts from 14 analysts, the average analyst target price for Canopy Growth Corp is CAD 7.12 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 Bearish, which is based on 2 positive signals and 6 negative signals. At the last closing, Canopy Growth Corp’s stock price was CAD 4.58Canopy Growth Corp’s stock price has changed by +2.00% over the past week, +9.31% over the past month and -75.34% over the last year.

About Canopy Growth Corp (WEED:CA:TSX)

Canopy Growth Corporation, together with its subsidiaries, engages in the production, distribution, and sale of cannabis and hemp-based products for recreational and medical purposes primarily in Canada, the United States, and Germany. It operates through two segments, Global Cannabis and Other Consumer Products. The company’s products include dried cannabis flower, extracts and concentrates, beverages, gummies, and vapes. It offers its products under the Tweed, 7ACRES, 7ACRES Craft Collective, DOJA, Ace Valley, Quatreau, Deep Space, First + Free, Surity Pro, Spectrum Therapeutics, Vert, Tokyo Smoke, Twd, Martha Stewart CBD, DNA Genetics, BioSteel, Storz & Bickel, This Works, HiWay, Simple Stash, Whisl, and Truverra brands. The company was formerly known as Tweed Marijuana Inc. and changed its name to Canopy Growth Corporation in September 2015. Canopy Growth Corporation was incorporated in 2009 and is headquartered in Smiths Falls, 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.

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.

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.

Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

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