Categories Analysis, Cannabis

Why Canopy Growth (CGC) might put investors in high spirits this year

For the cannabis industry, 2019 was a tough year though most companies started it on an optimistic note. With the year coming to an end, the market is currently pinning hope on cannabis 2.0 products and the expansion of store networks to give the market a new lease of life.

Also see: Beer firms expect new fizz from cannabis ventures?

While the marijuana boom continues to gather pace, several companies struggle with their piling up inventories, and Canopy Growth (NYSE: CGC) (TSX: WEED) is no exception. At the same time, the company has been building up its dried-flower inventory to monetize the growing demand for recreational cannabis in Canada. In the US, more states are legalizing pot-based products, which is expected to pick up pace in 2020.

Hold It!

Canopy growth might not be a wise investment option right now, despite the relatively low price and the market’s bullish outlook on the industry. Experts, in general, recommend hold, with a target price of around $25 that represents a 6% upside on the last closing price. The rating calls for patience on the part of investors while keeping a close watch on the stock for signs of retreat.

Canopy Growth (NYSE: CGC) posts wider-than-expected loss in Q2

Meanwhile, investor confidence remains weak due to factors like the company’s dismal quarterly performance and lack of clarity on Constellation Brands’ (STZ) stake in it, especially after the recent appointment of Constellation executive David Klein as the CEO of Canopy Growth.

New Hope

On the positive side, there is widespread optimism about Klein’s ability to take the company to the growth path. Moreover, the fact that Canopy Growth’s fundamentals are stronger than most of its rivals, including Tilray (TLRY) and Aurora Cannabis (ACB), makes it less risky. Its cash position is exceptionally good and far outweighs the liabilities.

Dismal Q2

In the second quarter, net loss missed the estimates amid cost escalation, though revenues more than doubled and topped the street view reflecting the strong marijuana harvest. Meanwhile, the loss narrowed to C$1.08 per share from last year’s C$1.52 per share loss. Though the outcome took a toll on the stock, it is certainly on the recovery path now.

Also see: Canopy Growth Q1 2020 Earnings Call Transcript

Two months ago, Canopy Growth’s shares slipped a two-year low, continuing the downtrend that started about a year ago that dragged their value by about 25%. However, there are reasons to believe that the bottom is already in. The stock closed the last trading session sharply higher.

We’re on Apple News! Follow us to receive the latest stock market, earnings and financial news at your fingertips

Most Popular

Key highlights from Deere & Co.’s (DE) Q4 2024 earnings results

Deere & Company (NYSE: DE) reported its fourth quarter 2024 earnings results today. Worldwide net sales and revenues decreased 28% year-over-year to $11.14 billion. Net income was $1.24 billion, or

NVDA Earnings: Nvidia Q3 profit jumps, beats estimates

NVIDIA Corporation (NASDAQ: NVDA) on Wednesday reported a sharp increase in adjusted profit and revenue for the third quarter of 2025. Earnings also topped analysts' estimates. The tech firm’s revenues

Lowe’s Companies (LOW): A few points to note about the Q3 2024 performance

Shares of Lowe’s Companies, Inc. (NYSE: LOW) rose over 1% on Wednesday. The stock has gained 8% over the past three months. The company delivered better-than-expected earnings results for the

Comments

  1. Pingback: Reba Fleurantin
  2. Pingback: Academic programs
  3. Pingback: Khaled Azazy
  4. Pingback: Lecture Halls
  5. Pingback: student exchange
  6. Pingback: Mr. Essam Shiha
  7. Pingback: Dr. Khaled Azazy
  8. Pingback: Pharmacy's Diploma
  9. Pingback: pull-ups
  10. Pingback: prostadine
  11. Pingback: Fiverr Earn
  12. Pingback: Fiverr Earn
  13. Pingback: Fiverr Earn
  14. Pingback: Fiverr Earn
  15. Pingback: Fiverr Earn
  16. Pingback: di più
  17. Pingback: fiverrearn.com
  18. Pingback: ddkc
  19. Pingback: Digital Marketing
  20. Pingback: Local Piano Movers
  21. Pingback: isla mahara
  22. Pingback: isla mujeres
  23. Pingback: future university
  24. Pingback: drip bucket hat
  25. Pingback: wix seo
  26. Pingback: Fiverr.Com
  27. Pingback: Fiverr.Com
  28. Pingback: Warranty
  29. Pingback: Piano disposal
  30. Pingback: FUE
  31. Pingback: Moving logistics
  32. Pingback: Moving assistance
  33. Pingback: Secure storage
  34. Pingback: Classic Books 500
  35. Pingback: FiverrEarn
  36. Pingback: FiverrEarn
  37. Pingback: FiverrEarn
  38. Pingback: Speaker
  39. Pingback: FiverrEarn
  40. Pingback: FiverrEarn
  41. Pingback: pupuk terbaik
  42. Pingback: partners
  43. Pingback: metanail serum
  44. Pingback: FiverrEarn
  45. Pingback: FiverrEarn
  46. Pingback: live sex cams
  47. Pingback: live sex cams
  48. Pingback: FiverrEarn
  49. Pingback: FiverrEarn
  50. Pingback: FiverrEarn
  51. Pingback: french bulldog
  52. Pingback: FiverrEarn
  53. Pingback: FiverrEarn
  54. Pingback: FiverrEarn
  55. Pingback: what is seo
  56. Pingback: pharmacy
  57. Pingback: Kuliah Termurah
  58. Pingback: FiverrEarn
  59. Pingback: cheap sex cams
  60. Pingback: fullersears.com
  61. Pingback: dog probiotics
  62. Pingback: live sex cams
  63. Pingback: frt trigger
  64. Pingback: 늑대닷컴
  65. Pingback: One Peace AMV
  66. Pingback: One Peace AMV
  67. Pingback: nang sydney
  68. Pingback: superslot
  69. Pingback: allgame
  70. Pingback: 918kiss
  71. Pingback: หวย24
  72. Pingback: Lipstick shades
  73. Pingback: pg slot
  74. Pingback: Raahe Guide
  75. Pingback: 300 win mag ammo
  76. Pingback: 44 mag ammo
  77. Pingback: SaaS Law Firm
  78. Pingback: Bulk URL Shortener
  79. Pingback: itme.xyz
  80. Pingback: masumintl
  81. Pingback: itme.xyz
  82. Pingback: FB URL Shortener
  83. Pingback: itme.xyz
  84. Pingback: ItMe.Xyz

Comments are closed.

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top