Canopy Growth remains strong investment

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If you’re looking for a good entry into marijuana investments, consider Canopy Growth

Canopy Growth continues to receive praise from market analysts for its activities. Most recently, market analysis firm Piper Jaffray spoke up, stating that the company is going to be a favorite in the industry, which is showing favor toward large-scale operators. The comments helped boost the company’s stock price and it is still one of the favorites of virtually all analysts for those looking to step into marijuana stock investments.

Canopy Growth’s stock has climbed around 60% this year already, gaining 80% over the past 12 months. This has also benefited Constellation Brands, which owns a piece of the company, and will prove to be of great importance when the companies begin to introduce CBD (cannabidiol) beverages.

Canopy’s physical presence is working to its advantage. Because federal law in the U.S. prohibits marijuana companies doing business in the country from being publicly traded, Canopy has maintained its operations in Canada and elsewhere, meaning it can legally be traded in the U.S.

This is shoring up Canopy’s position and Piper’s Michael Lavery states that “capacity, scale and execution will continue to matter for the next 12-24 months as growing supply catches up with strong demand in both Europe and Canada, and we consider Canopy well positioned relative to its peers on these measures.”

He adds, “Given the scarcity and necessity of licenses (at least under current state rules), we believe M&A is a critical part of any U.S. entry strategy. Canopy has cash and could also likely use debt or equity for any potential deal.”

As soon as marijuana is legalized in the U.S., which could happen within the next couple of years, Canopy will already be in a great position to control a significant part of the market. Getting in now, and holding as a long-term investment, will prove to be extremely lucrative.