Business

After a 60% drop in 6 months, Bank of America says buy pot stock Canopy

Canopy Growth

Tom Franck | CNBC

With shares down more than 60% over the last six months, it’s tough to remain pessimistic on marijuana grower Canopy Growth, according to Bank of America Merrill Lynch.

The brokerage upgraded the Canadian cannabis producer to buy from neutral on Wednesday and told clients that the stock’s 2019 swoon has tempered valuation and earnings estimates to more reasonable levels.

“Street estimates [are] achievable (even beatable) for maybe the first time in Canopy’s history as a public company,” analyst Christopher Carey wrote in a note. With leaner channel inventory and improving retail data ahead, “a bear case based on multiple compression and to a certain extent cash burn (despite still years of cash) seems less robust now.”

Products You May Like

Articles You May Like

Consumers say this pitfall is ‘their biggest threat to building wealth’ — yet about half do it anyway
Charter shares plunge after chief financial officer says company may lose broadband subscribers in fourth quarter
A 401(k) rollover is ‘the single largest transaction’ many investors make, expert says. What to know before doing it
Blue Flag Capital On Designing The Future Of Soulful Hospitality
Social Security – Beware The Annual Earnings Limitation

Leave a Reply

Your email address will not be published. Required fields are marked *