Cannabis company Canopy Growth Corporation (TSX:WEED, NYSE:CGC) has been riding high this summer, securing a multi-billion investment from beer giant Constellation Brands Inc (NYSE:STZ) and inking deals with Health Canada to increase its growing capacity.
Cowen analyst Vivien Azer, a senior research analyst in the beverage, tobacco and cannabis sectors, reiterated an Outperform rating and raised the company’s price target to C$74 from C$56.
READ: Canopy Growth to increase growing capacity after receiving amended licenses from Health Canada
Azer met with Canopy Growth’s management and said she was confident in the company’s “ability to establish an early lead in the adult use cannabis market, as well as domestic and international medical cannabis markets,” as per a note shared by TheFly.com.
Its US$4bn cash infusion from Constellation Brands, the maker of Corona beer, is expected to give the company a head start in international markets, according to the analyst.
The company operates 10 licensed cannabis production sites with over 2.7 million square feet of fully-licensed production capacity.
Shares of the Ontario-based company were up more than 4% to US$47.63 in Tuesday Morning trading.