Canaccord Genuity Maintains Their Hold Rating on Canopy Growth

By Ryan Adsit

Wall Street analyst has provided a rating update for the Consumer Goods sector company today, while remaining neutral on the stock. Canopy Growth (TSX: WEED) received a Hold rating from Canaccord Genuity’s analyst Neil Maruoka, with a C$26.50 price target.

Maruoka commented:

“We view this as another incremental step into the burgeoning European medical cannabis market, and already reflected in our valuation. While we continue to believe Canopy may well emerge as the industry leader once the rec market comes on line in Canada, we note that the company currently trades at 23.6x our two-year forward EBITDA forecast, at the high end of larger peers averaging 15.9x EV/EBITDA (2-year fwd).”

According to TipRanks.com, Maruoka is ranked #1218 out of 4771 analysts.

Canopy Growth has an analyst consensus of Hold, with a price target consensus of C$26.50.

Based on Canopy Growth’s latest earnings report for the quarter ending December 31, the company posted quarterly revenue of C$21.7 million and quarterly net profit of C$1.58 million. In comparison, last year the company earned revenue of C$14.66 million and had a GAAP net loss of C$21.08 million.

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 on Friday at C$29.84.