Canopy Growth stock continues to surge today. At the time of writing, CGC stock is up 12% on the day and currently selling for $49.64 CAD. These gains are almost a daily trend for Canada’s largest cannabis firm this week.
Canopy Growth Stock
Is 2019 the year for Canopy Growth (TSX:WEED) (NYSE:CGC)?
The stock started January slowly—still reeling from December’s losses. However, CGC stock has grown over 35% in less than a week. What’s breathing new life into this stock?
We paired Canopy Growth’s stock surge with the revelation that the company had favorable backing from a Wall Street brokerage—Piper Jaffray.
On Tuesday, Michael Lavery told clients to expect significant growth soon as “the long-term growth opportunities are significant—both from transitioning illicit trade to legal sales, medical sales, and from transitioning sales in health & wellness categories to CBD-infused products.”
Investors needed to hear no more, and the bull-rush began.
Canopy Growth Stock in 2019
Yes, volatility could be on the horizon, as Canopy still has a lot of work to do. But Lavery’s optimism is warranted.
Firstly in 2019, the company is boosting its cannabis supply to help meet massive demand in the Canadian recreational marijuana market.
Secondly, it is also ready to take on the edibles and concentrates market once it becomes officially regulated. Canopy and Constellation Brands have announced plans to launch a lineup of cannabis-infused beverages.
But one of the biggest drivers of Canopy Growth stock is the CBD demand coming its way from the US. The legalization of hemp in America has created a huge opportunity for the brand to expand southwards.
The Bottom Line
Sometimes, it takes the green light from someone in the know to confirm what you may already be thinking. Piper Jaffray’s sentiment about Canopy Growth gave a green light to investors here.
Canopy Growth has plans to capitalize on the major markets about to explode—hemp CBD and cannabis edibles. Importantly, the company has the expertise, and the revenue to do so effectively and not every company can say that.
2019 could be the year for Canopy Growth stock to move in droves.
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