Canopy Growth stock gains again; Oppenheimer initiates at 'perform' with no price target

The U.S.-listed shares of Canopy Growth Corp. edged up 0.3% toward a fourth straight gain in midday trading Wednesday, although Oppenheimer analyst Rupesh Parikh initiated coverage of the Canada-based cannabis company with a not-so-enthusiastic "perform" rating and no price target. Parikh said that he believes Canopy is "best positioned" to capitalize on the global cannabis market over time, given its first-mover advantage, investments in key geographies, such as the U.S., Canada and Europe, partnership with Constellation Brands Inc. and the most capital of any cannabis player. "However, shorter-term, we believe a full valuation, lofty [Wall] Street expectations, the potential for losses to persist and regulatory delays hamper the case for outperformance," Parikh wrote in a note to clients. The regulatory delays refers to delays regarding use of CBD (cannabinoids) in the U.S. Of the 24 analysts surveyed by FactSet, nine have the equivalent of hold, 14 have the equivalent of buy and one has the equivalent of sell. The stock has now gained 5.9% year to date, while the ETFMG Alternative Harvest ETF has lost 4.7% and the S&P 500 has rallied 19.5%.

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