Canaccord‘s Matt Bottomley just assigned a ‘speculative buy’ rating on shares of Canopy Growth Corp. (TSX:WEED) (NYSE:CGC) (FRA:11L1) alongside a price target of $50 CAD per share, equivalent to roughly $38.03 USD. This is an upgrade from the previous hold rating issued just days ago.

Potential Upside

Bottomley’s price target for Canopy represents almost 20% upside to the $42.20 CAD per share close price on August 15th, 2018.

Context

Earlier this week, Canopy Growth reported its consolidated financial results for the first quarter fiscal 2019 ended June 30, 2018. Despite missing earnings by $0.25 CAD per share, the company still beat on revenues.

Soon thereafter, the company followed up with the announcement that Constellation Brands (NYSE:STZ) (NYSE:STZ.B) is increasing its ownership interest in Canopy Growth by acquiring 104.5 million shares directly from Canopy Growth, thereby achieving approximately 38 percent ownership.

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