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

Toyota CEO Akio Toyoda talks about why he isn’t all-in on EVs — and what made him do a ‘happy dance’
Hurricane Ian Reminds Us Of 3 Retirement Risks Few Consider
Unrelenting inflation is taking a toll, leaving more Americans living paycheck to paycheck
Activist Jana prepares to bring star nominees to Freshpet’s board. Here’s how it may create value
Tim Cook says there are 4 traits he looks for in Apple employees: ‘It’s been a very good formula for us’

Leave a Reply

Your email address will not be published.