Canopy Growth Corp (CGC) Shares Surge 2.63% Following Trump's Cannabis Rescheduling Order
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5d ago
0mins
Source: Benzinga
- Policy Shift: President Trump's recent executive order urging the DOJ to reschedule cannabis to Schedule 3 is seen as the most significant federal cannabis policy shift in over 50 years, potentially alleviating tax burdens and driving CGC shares up by 2.63%.
- Financial Outlook Improvement: Rescheduling would allow cannabis companies to deduct standard operating costs, significantly enhancing their financial outlook, although CGC is currently trading below both its 20-day and 100-day simple moving averages, indicating short-term weakness.
- Market Volatility: While the market anticipates a surge in CGC shares due to rescheduling, investors should remain cautious of the high volatility in the sector, particularly with ongoing restrictions on U.S. cannabis companies listing on major exchanges, which could impact long-term performance.
- Earnings Outlook: Investors are looking forward to CGC's earnings report on February 6, with analysts expecting a reduced loss of three cents per share compared to a loss of 79 cents last year, although revenue estimates of $50.59 million are down from $61.67 million, indicating ongoing challenges for the company.
Analyst Views on CGC
Wall Street analysts forecast CGC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CGC is 3.78 USD with a low forecast of 1.80 USD and a high forecast of 5.76 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
1 Buy
2 Hold
0 Sell
Moderate Buy
Current: 1.190
Low
1.80
Averages
3.78
High
5.76
Current: 1.190
Low
1.80
Averages
3.78
High
5.76
About CGC
Canopy Growth Corporation is a Canada-based cannabis company. The principal activities of the Company are the production, distribution and sale of a diverse range of cannabis and cannabinoid-based products for both adult-use and medical purposes under a portfolio of distinct brands in Canada. The Company delivers innovative products from owned and licensed brands, including Tweed, 7ACRES, DOJA, Deep Space, and Claybourne, as well as category defining vaporization devices by Storz & Bickel. Its segments include Canada cannabis, and Storz & Bickel. Its Canada cannabis segment includes the production, distribution, and sale of a range of cannabis, hemp, and cannabis related products in Canada. Its Storz & Bickel segment includes the production, distribution, and sale of vaporizers. In addition, it serves medical cannabis patients globally with principal operations in Canada, Europe and Australia.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
