Canopy Growth Pops Higher as Product Mix Praised

By Kim Khan

Investing.com – Pot stock Canopy Growth enjoyed solid midday gains Tuesday as it got a sell-side endorsement that its products are resonating with consumers.

Canopy Growth (TSX:) rose 6.4% in midday trading.

BMO Capital Markets upgraded the stock to outperform from market perform.

“We believe there is potential upside to Street expectations for the fiscal third quarter of 2020 driven by the company’s pivot into a recreational product mix that should now be better aligned with demand,” analysts Tamy Chen and Peter Sklar wrote in a note, Barron’s reported.

Shares of the company are up more than 13% year to date, but down more than 50% in the last 52 weeks.

But investors may want to be cautious.

There are signs that a 2020 rebound in the overall cannabis sector could already be fizzling out, Investing.com’s Brenda O’Farrell wrote today.

Elsewhere among the group, Tilray (NASDAQ:) rose 2.4% and Cronos Group (NASDAQ:) rose 1.7%.

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