In a recently released analyst guidance update, GMP Securities‘ Managing Director of Equity Research for Special Situations and Healthcare, Martin Landry, upgraded his rating on shares of Canopy Growth Corp. (TSX:WEED) (NYSE:CGC) (FRA:11L1) from a hold to a buy.
Landry’s update comes just days after Canopy announced that it would buy Acreage Holdings Inc. (CSE:ACRG.U) (OTC:ACRGF) once cannabis is legalized in the United States.
Regarding the Acreage deal, Landry noted that “there is a high likelihood that federal legalization occurs within the 90-month expiry clause. Hence, we are reflecting Acreage in our valuation (but not in our forecasts). We believe this combination makes Acreage much more valuable than as a standalone.”
Slightly higher than Merrill Lynch analyst Christopher Carey’s price target, and way higher than his prior price target of $65.00 CAD per share, Martin Landry’s new price target of $72.00 CAD per share implies a potential upside of approximately 11.73% based on the last traded price of $64.44 CAD per share on the TSX.
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