Canopy Growth (CGC, $36.12) got a rating downgrade from Jefferies
Cannabis company Canopy Growth got a rating downgrade from Jefferies on valuation.
Analysts at Jefferies lowered their rating on the company’s shares to underperform from hold. Their price target is $23.03.
Analyst Owen Bennett argued that while bulls will suggest that Canopy's multiple is deserved given possible near-term U.S. entry, it is still “too expensive” even though its U.S. optionality is the best among Canadian names.
The firm indicated that Canopy’s option to acquire U.S. multistate operator Acreage Holdings will likely be bolstered in the event of a change in U.S. federal cannabis laws. But for now both Canopy and Acreage are unprofitable, noted Bennett. According to the analyst, the fundamental outlook for other U.S. companies is "far superior".
Momentum Indicator for CGC turns negative, indicating new downward trend
CGC saw its Momentum Indicator move below the 0 level on June 18, 2025. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 74 similar instances where the indicator turned negative. In of the 74 cases, the stock moved further down in the following days. The odds of a decline are at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for CGC moved out of overbought territory on May 27, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 25 similar instances where the indicator moved out of overbought territory. In of the 25 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Moving Average Convergence Divergence Histogram (MACD) for CGC turned negative on May 30, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 42 similar instances when the indicator turned negative. In of the 42 cases the stock turned lower in the days that followed. This puts the odds of success at .
CGC moved below its 50-day moving average on June 17, 2025 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CGC declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
CGC broke above its upper Bollinger Band on May 16, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
Following a +3 3-day Advance, the price is estimated to grow further. Considering data from situations where CGC advanced for three days, in of 199 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 106 cases where CGC Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. CGC’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.702) is normal, around the industry mean (62.463). P/E Ratio (0.000) is within average values for comparable stocks, (89.614). CGC's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (2.987). Dividend Yield (0.000) settles around the average of (0.122) among similar stocks. P/S Ratio (1.820) is also within normal values, averaging (19.198).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. CGC’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 91, placing this stock worse than average.
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General Information
a producer of medical marijuana
Industry PharmaceuticalsOther
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