News & Events

Benchmark Initiates in Cannabis Space

We are initiating coverage of Canopy Growth Corporation (TSX WEED; NYSE CGC) with a Buy rating and C$100 price target. Our positive view is based on Canopy's exposure to meaningful demand drivers that include 1) Canopy's early leadership in the medical cannabis market in Canada, 2), upcoming legalization of recreational cannabis in Canada, 3) international growth from countries that have legalized cannabis and likely future legalization of cannabis for medical and recreational use in the US and overseas, and 4) meaningful investment from Constellation Brands, which accelerates the ongoing build-out of its international production and distribution operations and domestic retail infrastructure to meet rapidly growing global demand, and which enables M&A opportunities and internal development of new brands and products that use cannabis as an active ingredient.