Things Have Gone From Bad to Worse for Canopy Growth
Canopy Growth (NASDAQ: CGC) has been a sinking ship over the past few years. Its stock price has been steadily falling and there's little hope of a recovery. The company reported its latest financial results last month, and things are simply not improving enough for investors to get bullish about the stock. Even though it's one of the top cannabis producers in Canada, the business is in terrible shape. With its stock down more than 90% over the past few years, the company has a lot of work to do if it wants its valuation to recover.
Last month, one investment banking firm, Benchmark, set a price target of zero for Canopy Growth. Analyst Mike Hickey stated that Canopy Growth's focus on the U.S. market "could be a signal of desperation, given that the U.S. market remains federally illegal."
Canopy Growth's obsession with entering the U.S. isn't new, however. It was 2019 when the company first unveiled plans to acquire multi-state cannabis company Acreage Holdings as Canopy Growth looked to enter the U.S. pot market as quickly as possible. The one hiccup, of course, is that marijuana remains federally illegal in the U.S., and there's no legislation on the horizon to suggest that will change anytime soon.
Source Fool.com
Benchmark El. Inc. Stock
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