Canadian cannabis company Canopy Growth Corp.’s stock jumped 10% Friday after Piper Jaffray raised its price target on the stock by 50% and said the company is well-positioned in the emerging and growing markets for legal and medical marijuana…
Analysts Michael Lavery and Jeffrey Kratky raised their stock-price target to $60 from $40 and reiterated their overweight rating on the stock. Piper is the latest firm to take a bullish stance on Canopy, which is viewed as one of the more promising companies in the sector, thanks to the $4 billion investment that it won from Corona beer maker Constellation Brands Inc. STZ, +1.17% last year. Armed with that war chest, the company is expected to have the cash needed to seal the deals and secure the licenses it will require to succeed.
Piper Jaffray is expecting the global cannabis market to be worth $250 billion to $500 billion a year in the long term and to be worth $15 billion to $50 billion in the nearer term.
“We believe the long-term growth can be significant — both from transitioning illicit trade to legal sales, medical sales, and from transitioning sales in health [and] wellness categories to CBD-infused products,” they wrote in a note. CBD is one of the nonpsychoactive ingredients in cannabis that are held to have wellness benefits.
Canopy’s recent success in receiving a legal hemp license in New York is “a tangible first step forward in the U.S. that points to the beginning of a long US growth trajectory,” said the note. The company has not yet selected a site but is expecting to invest…
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