Trump Signs EO to Fast-Track Medical Marijuana Research, Opening New Opportunities
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Policy Shift: Trump's executive order aims to expedite the FDA's review for reclassifying marijuana from Schedule I to Schedule III, potentially opening new avenues for medical marijuana research, although it negatively impacts the prospects for recreational cannabis legalization.
- Market Reaction: Despite being seen as a win for the medical marijuana sector, Trulieve Cannabis's stock plummeted 24% on December 18, with Curaleaf and Cresco Labs dropping 32% and 39% respectively, reflecting market disappointment over the recreational legalization outlook.
- Financial Services Opportunity: If cannabis is reclassified to Schedule III, financial institutions will be able to provide basic financial services to marijuana businesses, reducing borrowing costs and the need for dilutive share offerings, which could positively impact existing shareholders.
- Tax Burden Relief: The reclassification would exempt Trulieve, Curaleaf, and Cresco Labs from the constraints of tax code Section 280E, allowing them to deduct everyday expenses, which is expected to improve operating results in the upcoming quarters.
CGC
$1.48+Infinity%1D
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 5.70 USD with a low forecast of 5.70 USD and a high forecast of 5.70 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.
1 Analyst Rating
1 Buy
0 Hold
0 Sell
Moderate Buy
Current: 1.690
Low
5.70
Averages
5.70
High
5.70
Current: 1.690
Low
5.70
Averages
5.70
High
5.70
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.
