Market Realist
Canopy Growth
On June 27, Canopy Growth (CGC) (WEED) reported its fourth-quarter earnings, which fell short of expectations. However, the stock was upgraded by three investment firms on a positive outlook for the sector (HMLSF).
We followed up with an update and saw that the consensus mean price target for the company rose to 37.70 Canadian dollars on June 28 from the previous target of 37.40 Canadian dollars. As of July 3, the consensus price target rose even higher.
Price target
As of July 3, the consensus price target for Canopy Growth stood at 39.60 Canadian dollars, representing an increase of 5% since our previous update. The stock closed at 38.70 Canadian dollars as of July 4, which represents a 2.3% potential upside. The median price target, however, remained at 40 Canadian dollars, representing a potential upside of 3.4%.
Analyst recommendations
The consensus analyst recommendation for the next 12-month period remained unchanged with an overall “buy” recommendation for the stock. Of the ten analysts in the above chart, one maintained a “strong buy,” and five maintained a “buy” recommendation for the stock. Three analysts continued to have a “hold” recommendation, while one analyst was bearish on the stock with a “sell” for the next 12-month period.
In the following parts, we’ll see how these recommendations compare with Aurora Cannabis (ACBFF) (ACB)
Aurora Cannabis
Unlike Canopy Growth (CGC) (WEED), Aurora Cannabis (ACB) (ACBFF) has not reported its recent earnings and has not announced its upcoming earnings date.
The company recently acquired MedReleaf (MEDFF) and CanniMed Therapeutics. The impact of these two companies will be something to watch whenever the company releases its earnings. To learn more about the acquisition, read MedReleaf Stock Rises on Aurora Cannabis Acquisition.
Price target
Aurora Cannabis closed at 9.30 Canadian dollars on July 4. It had a consensus price target of 9.63 Canadian dollars and a median price target of 9.50 Canadian dollars. That translates to an upside of 2%–3.5% over the most recent closing price.
Analyst recommendations
The current consensus mean price recommendation for Aurora Cannabis for the next 12-month period is a “buy,” with two analysts recommending a “strong buy” for the stock. One analyst continued to have a “buy” recommendation on the stock, and one analyst maintained a “hold” recommendation.
Note in the above chart that there were fewer analysts for Aurora Cannabis than for Canopy Growth or Aphria (APHQF). We’ll look at Aphria more closely in the next part of this series. That makes analysts’ ratings somewhat less reliable compared to stocks (MJ) that have coverage from more analysts.
Editor’s Note: As of July 6, 2018, Echelon Wealth Partners analyst Russell Stanley raised his target price for shares of Canopy Growth Corp. (WEED-T, CGC-N) to $30 from $22, but maintained a ‘sell’ rating for the stock, given its current price. He also rated The Hydropothecary Corp. (HEXO-T, “Speculative Buy” rating, $6.75 target) and Village Farms International (VFF-T, “Speculative Buy”, $15.00 target), as reported by the Globe and Mail, July 4th, 2018.
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