The Financial Post reports in its Wednesday, Jan. 29, edition that Canopy Growth surged ahead $3.06 to close Tuesday in Toronto at $31.45. The Post's Vanmala Subramaniam writes that the stock began its advance after BMO Nesbitt Burns analyst Tamy Chen boosted her share target from $25 to $40. Ms. Chen wrote in a Tuesday morning note, "Following the stock's notable sell-off last year driven by a sub-optimal product mix (gel caps) and industry-wide challenges, we believe there is potential upside to Street expectations for FQ3/20 driven by the company's pivot into a recreational product mix that should now be better aligned with demand." Ms. Chen also raised her rating from "hold" to "buy."
She noted that while Canopy and other major LPs such as Hexo, Tilray and Aphria have experienced "meaningful market-share expansion," she believes Canopy's value-price brands in particular have "likely taken some share" from Aurora Cannabis and OrganiGram Holdings.
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