Canopy Growth Gets a Hold Rating from Canaccord Genuity

By Jason Carr

The Consumer Goods sector company, Canopy Growth (TSX: WEED), has received a rating update from a Wall Street analyst today. Analyst Neil Maruoka from Canaccord Genuity rated Canopy Growth (TSX: WEED) a Hold, setting a C$11.50 price target.

Maruoka said:

“Date and time of first dissemination: June 19, 2017, 11:53 ET Date and time of production: June 19, 2017, 11:53 ET Target Price / Valuation Methodology: Canopy Growth Corporation – WEED We value the medical cannabis market based on a DCF model, using a 10.0% WACC and 2.0% terminal growth; the higher-risk rec opportunity is valued using a probabilityweighted NPV. Together, these two analyses yield a target price of C$11.50. Risks to achieving Target Price / Valuation: Canopy Growth Corporation – WEED Shift to wholesaler distribution model will likely generate pricing headwinds Regulatory headwinds Delay to legalization could enhance competitive pressures Legalization would create enforcement issues Legalization is an opportunity, but could also create challenges for medical Distribution of Ratings: Global Stock Ratings (as of 06/19/17) Rating Coverage Universe IB Clients # % % Buy 572 60.59% 40.21% Hold 273 28.92% 20.15% Sell 26 2.75% 15.38% Speculative Buy 73 7.73% 68.49% 944* 100.0% *Total includes stocks that are Under Review Canaccord Genuity Ratings System BUY: The stock is expected to generate risk-adjusted returns of over 10% during the next 12 months. HOLD: The stock is expected to generate risk-adjusted returns of 0-10% during the next 12 months. SELL: The stock is expected to generate negative risk-adjusted returns during the next 12 months. NOT RATED: Canaccord Genuity does not provide research coverage of the relevant issuer.”

According to TipRanks.com, Maruoka is ranked 0 out of 5 stars with an average return of -3.3% and a 33.1% success rate. Maruoka covers the Healthcare sector, focusing on stocks such as Merus Labs International, Cardiome Pharma Corp, and Concordia Healthcare.

Canopy Growth has an analyst consensus of Moderate Buy, with a price target consensus of C$12.25.

Canopy Growth Corp. supplies unmatched selection of premium medical marijuana, an agricultural product. It products treat symptoms such as chronic pain, seizures, muscle spasms, nausea and loss of appetite. The company was founded by Bruce Linton on August 5, 2009 and is headquartered in Smith Falls, Canada.

The company’s shares closed last Monday at $8.02.