Canopy Growth shares rise premarket after Seaport Global upgrades to buy from neutral

Canopy Growth Corp. shares

CGC, -0.96%

WEED, -1.04%

rose 1.6% in premarket trade Monday, after Seaport Global upgraded the stock to buy from neutral and said it now looks attractive after a steep selloff. Canopy shares are down 7.4% in 2019, while the S&P 500

SPX, -2.59%

has gained 13.6%, following two declines in the broader market that coincided with a large selloff in the cannabis space. }To be sure, cannabis has been a risk-off trade to this point, and the Street has had to reset growth and profit expectations for the space and Canopy, alike,” analyst Brett M. Hundley wrote in a note. “However, we would argue that cannabis beta needs to improve going forward, particularly for CGC. In addition, forecasted cash for Canopy cannot be valued on a 1-for-1 basis; it will likely be multiplicative.” The analyst assigned the stock a $31 price target, that is about 25% above its current level. Earlier Monday, Constellation Brands Inc.

STZ, -1.56%,

which has invested $4 billion in Canopy, said it expects its share of the Canadian company’s second-quarter losses to come to $54.3 million on a net basis.

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