Canopy Growth Predictions: What Does the Future of NYSE:CGC Stock Look Like?

cgc stock forecast
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CGC Stock Forecast

Whenever a Canadian marijuana stock lists on a major U.S. stock exchange, the market tends to take notice. After all, only two companies have done so, making it a very rare occurrence.

Canopy Growth Corp (NYSE:CGC) recently became the second Canadian marijuana company to list on a major U.S. exchange: the New York Stock Exchange (NYSE). 

The NYSE listing caused a big stir for two reasons:

  1. As I just mentioned, the situation is rare.
  2. The company is considered a leader in the marijuana industry.

Canopy Growth was, of course, the largest legal marijuana company by market cap for many months, with that title only recently being lost as Aurora Cannabis Inc (OTCMKTS:ACBFF, TSE:ACB) acquired MedReleaf Corp (OTCMKTS:MEDFF, TSE:LEAF).

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Already a large company, Canopy Growth has been aggressively expanding its reach into international markets, gaining footholds in Germany, Australia, and a number of other large markets.

It’s an attractive stock which I’ve long recommended, since as far back as November 2017. Since that time, the stock—formerly known as TWMJF on the over the counter (OTC) markets—grew 220%. And I don’t see the company slowing down.

So, why am I bullish in my CGC stock forecast? Simple: the U.S. marijuana market.

CGC Stock Price History and Future

The Canopy Growth stock price jumped by about five percent on May 31. It has gained nearly 30% in the month of May alone, when it was first announced that the company would receive an NYSE listing.

The reason why the CGC stock forecast looks so bright is that the U.S. marijuana market is so closed off at the moment.

By that, I mean there are no pure-play marijuana companies listed on any major U.S. stock exchange that sell their products in America.

Now, that doesn’t mean there is a lack of successful U.S. marijuana companies. Far from it. But, due to the federal prohibition against marijuana, the major stock exchanges have been reluctant to add U.S. marijuana stocks.

Not to mention, the laws make production, trade, and a good number of other industry concerns that much more complicated.

Institutional investors especially have been wary of the U.S. marijuana market.

After all, you’d hardly want to put your money into something that tomorrow could be totally shut down by the federal government—and the feds do have the legal authority to do that, in spite of state laws that say otherwise.

My bullish CGC stock forecast, then, is based on the fact that there are many investors in the U.S. who are watching the marijuana market surge but are unsure of how to get involved.

For investors who dislike the OTC market and are skittish about Canadian stock exchanges, there are few options for marijuana investment.

By getting an NYSE listing, Canopy Growth stock now has a big fat target on it, with U.S. investors able to put their capital into a legitimate powerhouse marijuana company.

That’s going to help boost stock value in the near and medium terms.

Of course, it will be an up-and-down ride, especially with so many investors fretting about overvaluation.

In the end, I expect the CGC stock price to gain at least 20% over the next couple months. But, by the end of the year, I project that the stock will have gained far more than that.

You see, this summer will almost certainly see Canadian marijuana legalization.

Canopy Growth is one of the largest marijuana companies in the world, it is based in Canada, and it has the production capacity to take advantage of the Canadian market.

The company has several deals already in place with provinces across Canada to supply cannabis when the floodgates open.

The way I see this summer playing out for Canopy Growth stock is as follows:

  1. It will receive a massive boost to end August (provided that Canadian marijuana legalization takes place as scheduled).
  2. Next, there will be a pullback as investors become cautious (overvaluation is an ever-present threat in the marijuana world).
  3. Then there will be a surge to finish off the year.

Overall, my CGC stock forecast has the company gaining solid double-digits in the next six months, and quite possibly more if the pullback is lighter than I anticipate.

Analyst Take

The CGC stock price is already on the tail end of a surge that propelled through May.

While I expect the stock to give back some of those gains in the next few weeks, I believe that this summer will shake out to be a very strong one for the marijuana industry in general, and for Canopy Growth stock in particular.

Between the push for U.S. marijuana legalization, the Canadian market opening, international markets looking for suppliers, and an interest in one of the most exciting emergent industries around, I feel that CGC stock is perfectly situated to reap the benefits.

It’s on a major stock exchange, it has strong foundations, and it is one of the most trusted names in the legal marijuana sector. With a combination like that, the CGC stock forecast is quite rosy.