Thursday , July 29 2021

Here's what can lead to canopy growth stock (US) over $ 70

Canopy growth (TSX: WEED) (NYSE: CGC) is on a roll again. In the last three weeks, the biggest marijuana producer has grown about 60%, defying all odds in a market where investors often avoid risk.

This jump in the value of Canopy shares helped investors recover most of the losses they suffered during a major correction that occurred in the last quarter of 2018. After this impressive recovery many investors are wondering if this great cauldron producer will reach its full high of $ 76.68 hit last summer.

In my opinion, Canopy Growth is well on its way to reaching new highs, despite some short-term setbacks for weed producers in the last quarter of 2018. Here's why I feel optimistic about this company.

The momentum of growth continues

Canopy Growth is one of the few weed stocks that has a solid foundation for expanding its business and rewarding investors along the way.

What makes Canopy different from other producers is the size of the market, the ability to increase production and the diversity of product offerings beyond the international reach.
Canopy currently operates weed-growing facilities with more than 2.4 million square feet of space.

But the producer is expanding its operations quickly, which will provide the potential to manage more than five million square feet of production space through next year.

In the latest development, Canopy Growth has acquired a new hemp license in New York as it plans to build an extraction and manufacturing facility.

GMP analyst Martin Landry, who raised the stock price target from $ 50 to $ 70, said in a recent note that CBD-based consumer products could reach $ 50 billion.

Initiative like this and the company's partnership with Constellation marks Make Canopy a formidable participant in marijuana space and more appealing to investors seeking exposure to the US cannabis market.

According to Landry, Canopy could have CBD-based products in the US by 2020, leveraging the distribution reach of Constellation Brands to accelerate market penetration.

The size of the canopy, its superior product offerings and global reach will keep the company ahead in the game, as legalization of medical and recreational cannabis continues to spread worldwide with France, Italy, Peru and New Zealand in the list of countries which is likely to be the next to make the move.

Bottom line

There areI doubt that weed stocks are still highly volatile, and today's gains can be wiped out with bad news. But if you are a long-term investor and want to keep some stocks of marijuana in your portfolio, then the Canopy should be one of them.

You may be missing one of the greatest opportunities in the history of Canadian investment …

Marijuana has been legalized across Canada on Oct. 17, and a little-known Canadian company has just unlocked what some experts believe may be the key to profiting from the next marijuana outbreak.

In addition to making important partnerships with Facebook and Amazon, they have just made a revolutionary agreement with the government of Ontario.

A Canadian based company has already We started introducing this technology to the market – which is why legendary Canadian investor Iain Butler believes they have an edge over Amazon in this single-generation technology race.

This is the company we think you should consider having in your wallet if you want to position yourself wisely for the next marijuana outbreak.

Learn more about this TSX stock now

The foolish contributor Haris Anwar has no position in the above mentioned companies.

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