A Canopy Growth Stock Forecast For 2019

InvestingHaven was one of the lonely voices to stay positive on stock markets in general, and cannabis stocks in particular. We tipped the cannabis sector as a potential candidate for the top 3 most profitable markets in 2019 since we published our bullish Cannabis stocks Canada forecast 2019 many months ago. InvestingHaven holds a bullish Canopy Growth stock forecast for 2019. Our Canopy Growth forecast for 2019, ultimately 2020, is 200 CAD.

During the sell-off in the last 3 months of last year, we did spot something quite unusual: relative strength of cannabis stock in general, and Canopy Growth (WEED.TO) in particular. This is the beauty of a sell-off: while investors get concerned they start selling their top holdings (the ones least in red). The trick, however, is to focus on the markets/assets/stocks that are holding up best.

We spotted exceptional relative strength and wrote about this at length. One of the articles we wrote was Canopy Growth near all-time highs, this is the message to investors in the first days of 2019. This quote stands out:

The cannabis sector shows relative strength during market turmoil. It was the first to recover aggressively. This is where investors want to put their money. Because of this we believe the cannabis sector qualifies as a top 3 investment opportunities of 2019.

That said, we want to make the point in this article that we hold a very bullish Canopy Growth stock forecast for 2019. Believe it or not, our price target is 3x higher than today’s price.

Readers can rest re-assured that we are not overreacting. We are very aware, and our Canopy Growth stock forecast for 2019 is very rational. We derived it by looking at it in a structured, disciplined way.

Canopy Growth Stock Forecast 2019: Cannabis awesome fundamentals

Let’s start with a review of the fundamentals of the cannabis sector before doing our Canopy Growth stock forecast.

If there is one thing that all data points seem to confirm it certainly is the amazing growth (potential) of this sector. On the other hand, admittedly, the most recent data points on the Canadian cannabis sector deficit is somehow conflicting.

MarketWatch published an interesting piece recently about the supply/demand of the cannabis market. It also indicated, in this piece, to which market value the cannabis sector may grow short and longer term. It is based on research of Piper Jaffray.

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