The pot is hot on the Toronto Stock Exchange

Finance Trading

Canopy Growth exceeds Quebec heavyweights inc.

With a stock market valuation of nearly $ 13 billion on the Toronto Stock Exchange, Canadian cannabis producer Canopy Growth is now worth more than Metro, Bombardier, Air Canada and SNC-Lavalin.

Yesterday, the title of Canopy Growth (WEED: TOR) continued its progression by leaping 8% to end the session at $ 58.62.

Over the past year, Canopy’s share price has exploded by more than 600%. Canopy Growth is now the largest cannabis producer in the world.

Since Constellation Brands’ $ 5 billion investment in Canopy last month, the market value of the Smiths Falls cannabis producer has risen by 70%.

Of the 246 companies that are part of the Toronto Stock Exchange’s flagship index, the S & P / TSX, Canopy now ranks in the top 50 Canadian equity valuations.

In 2017, Canopy Growth reported revenues of $ 78 million, far from those generated by Quebec heavyweights. such as Bombardier, Metro, Air Canada and SNC-Lavalin.

In the case of Bombardier, the aircraft and train manufacturer earned more than $ 21 billion last year.

Overrated?

Several analysts believe that Canopy’s title is overvalued as Canada has more than 100 cannabis producers for therapeutic purposes.

On October 17, all these producers will see their production explode with the legalization of cannabis use for recreational purposes.

According to a consensus of analysts who follow the title of Canopy Growth, the stock should trade at $ 48.64 within one year, almost $ 10 less than yesterday’s price on the Toronto Stock Exchange.

According to BMO Capital Markets analyst Peter Sklar, Canopy’s annual revenues are expected to grow significantly by 2020 to $ 1.2 billion (baseline).

In addition to its presence in Canada, Canopy now has a presence in cannabis production joint ventures in 11 countries on five continents.

By 2020, Canopy Growth could produce more than 215,000 kilograms of cannabis at an average cost of 59 cents per gram, according to the BMO analyst.

STOCK MARKET VALUE OF CERTAIN COMPANIES TO THE TORONTO STOCK EXCHANGE

  • Canopy Growth: $ 12.9 billion
  • Bombardier: $ 11.5 billion
  • Metro: $ 10.6 billion
  • SNC-Lavalin: $ 9.39 billion
  • Air Canada: $ 7.3 billion

– Source: Toronto Stock Exchange

 

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