Piper Sandler Downgrades Canopy Growth To Neutral
08:17 AM EST, 02/05/2021 (MT Newswires) -- Piper Sandler lowered its rating on the U.S.-listed shares of Canadian cannabis producer Canopy Growth Corp. (WEED:TSE, CGC: NYSE) after markets closed on Thursday.
Analyst Michael Lavery set the new rating at neutral, the equivalent of a hold, from a previous weighting of overweight, the equivalent of a buy rating. His price target remains unchanged at US$27 per share.
CGC shares are up 215% since October 2020, Lavery said, likely driven by improving sentiment around cannabis and potential for U.S. legalization following the Nov 2020 elections. However, that recent growth means Canopy is currently trading at 21 times Piper Sandler's estimates for 2022 sales "and we do not see upside to valuation based on fundamentals," Lavery said.
The analyst added "retail investor enthusiasm could still push shares higher."
Price: 56.33, Change: -1.07, Percent Change: -1.86