Why Canopy Growth Stock Popped 11% Yesterday

After tumbling nearly 5% in Monday trading, shares of Canadian cannabis company Canopy Growth (NYSE:CGC) rebounded Tuesday, closing the day up 11%…

You can thank BMO Capital for that.

With Canopy Growth stock down by more than half over the past 52 weeks of trading, this morning, Canadian banker BMO finally upgraded the shares from “market perform” (which it has demonstrably failed to do) to “outperform” — which BMO hopes it now will.

As BMO explained in its note, covered on StreetInsider.com today, Canopy has suffered from “industrywide challenges” over the past year, as well as a “suboptimal [recreational] product mix.” Few analysts who follow the stock see Canopy Growth turning profitable before 2023, and some even think it will be losing money in 2024. But according to BMO, “there is potential upside to Street expectations for FQ3/20 driven by the company’s pivot into a rec product mix that should now be better aligned with demand.”

Mind you, even BMO isn’t predicting that…

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