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The Markets
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Cannabis

Canadian cannabis stocks have more than doubled since Constellation deal with Canopy Growth, says Stifel

Stifel analyst Christopher Growe credits Canopy Growth’s deal with Constellation Brands with starting the surge

Tilray Inc (NASDAQ:TLRY) was the talk of the town Wednesday as it took shareholders on a wild ride with trading halted twice. Its shares nearly doubled from its previous close, dipped into negative territory and then soared again just before the closing bell to end the day on a high note.

The cannabis company’s performance pushed the total market capitalization for Canadian Licensed Producers above $C80bn at its peak, closing at around C$73bn, as per a Stifel note shared by TheFly.com.

READ: Constellation Brands ups stake in Canopy Growth, invests an additional US$4bn

Tilray’s performance was impressive, but Canadian cannabis stocks have been on the rise since Constellation Brands Inc (NYSE:STZ), the maker of Corona beer, invested an additional US$4bn in Canopy Growth Corp (NYSE:CGC, TSX:WEED).

Since then, Canadian cannabis stocks have soared 127%, according to Stifel analyst Christopher Growe.

The analyst estimates the Canadian market to be worth around C$10bn, so more global opportunities will need to present themselves for the valuations to be realized.

Canada is set to legalize cannabis this fall, but no other countries have announced similar plans just yet.

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