Marijuana Stock Rally As Canopy Growth Stock Target Target Hike
Canopy Growth (CGC) benefits from a "long US growth path", largely thanks to its New York ham production license, Piper Jaffray analysts said they wandered their price target on Canadian cannabis producer. Canopy Growth Stocks led marijuana stocks higher Friday.
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Piper Jaffray analyst Michael Lavery said in a survey note that Canopy "has hemp-specific IP, cash reserves and technical expertise that should position it well in the US hemp and CBD market," according to MarketWatch.
The agricultural bill in 2018 legalized industrial hemp, which is a source of cannabidiol or CBD. CBD is a compound in hemp and marijuana plants that do not deliver high of THC. Many have used it for the purpose of reducing anxiety and other wellness purposes.
"Although we do not yet have more details on their plans, Lavery's note continued," we believe this particular step in the US is a clear positive and makes us more bullish on its prospects for sustainable growth. "
Piper Jaffray increased his price target on Canopy Growth stock to 60 from 40. The company this month also gave high marks to rival Tilray (TLRY).
Canopy Growth Stock, Marijuana Stocks
] Canopy Growth stock jumped 7% on the stock market today, including marijuana stocks, Aurora Cannabis (ACB) rose 1% fluctuating near its 200-day line. Cronos Group (CRON ) climbed 2%. Aphria (APHA) rose 2%. Tilray (TLRY) rose 3.5%.
Canopy Growth said this month that New York had given it a State hemp license to plan $ 100 million – $ 150 million in New York operation The exact amount depends on the approval of a particular site.
"The project is another example of the strategic benefit Canopy Growth has benefited from the recently completed $ 4 billion strategic investment make t of Constellation Brands, a New York based beverage alcohol leader and Fortune 500 company, "Canopy Growth said in a release this month.
Race in the US Marijuana Market
Canopy Growth stock jumped after Constellation Brands (STZ), a large beer and wine company announced plans to make the investment. But since then, Constellation has met several questions about its game at Canopy Growth.
Deficiencies in Canada's recreational market appear to endure at least this year. Analysts are concerned that winners and losers in the near-end industry are far from clear. Marijuana stocks are still volatile.
Other marijuana companies are trying to find ways to tap that can be a big US CBD market, which is likely to be reinforced by people seeking physical therapy or hunting for wellness development.
Tilray this month announced a revenue sharing agreement with Authentic Brands Group, a company that has a massive retail location and well-known companies as partners.
Green Growth Brands, an Ohio-based company, said it collaborated with DSW (DSW) to obtain CBD Foot Cream and Muscle Balm
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