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<p class = "canvas-atom-text-canvas Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The revenue season is over, but it does not mean that companies are not paying attention to their growth prospects for sales and profits. arena of marijuana stock, Cover growth (NYSE: CGC) has long been a leading cannabis company, and some see much more growth in its future. For Constellation Brands (NYSE: STZ)However, a significant minority stake in Canopy's capital had a significant negative impact on its results. "data-reactid =" 12 "> The peak of the earnings season is over, but that does not mean that companies are not paying attention to growth in sales and profits.In the arena of marijuana stocks, Cover growth (NYSE: CGC) has long been a leading cannabis company, and some see much more growth in its future. For Constellation Brands (NYSE: STZ)However, a significant minority stake in Canopy's shares had a significant impact on its results.
Analysts give Canopy a little help
Canopy Growth shares rose only 0.5% on Monday morning, despite favorable comments from stock market analysts. Seaport Global has raised its rating on buying neutral cannabis grower and has set a price target of $ 31 per share.
Smiling man wearing a hairnet and gloves while working with a cannabis plant
Source of image: Canopy growth.
<p class = "web-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Seaport noted the fact that the Canopy stock has seen a sharp drop in recent months, as cannabis investors have generally been a little less comfortable with the risks inherent in the fast-growing sector. brutal departure of former co-CEO Bruce Linton also introduced a great deal of uncertainty about the future strategic direction of the marijuana company. In the opinion of Seaport, however, the decline in Canopy's share price creates a good valuation opportunity, and the marijuana industry as a whole still seems to have good prospects. "Data-reactid =" 27 "> Seaport pointed out that the Canopy stock has been seen a sharp decline in recent months as investors in cannabis have generally been a little less comfortable with the inherent risks In the fast-growing sector, especially for Canopy, the sudden departure of former co-CEO Bruce Linton also introduced a lot of uncertainty about the future strategic direction of the marijuana company. Canopy's stock price creates a good value opportunity and the marijuana industry as a whole still seems to have good prospects.
Like many cannabis companies, Canopy spends a lot of money trying to grow and maintain its leading role in the market. Still, some trends at Canopy are worrisome, including the decline in the pricing power of recreational marijuana sales in recent quarters.
Analysts believe that market operators have overlooked Canopy's outlook too much. With a stock near its lowest levels in more than a year, those who like good value start to take a closer look at the marijuana company.
Constellation counts its losses
In the same vein, the shares of beer giant and spirits, Constellation Brands, rose only a fraction of a percent Monday morning. The company announced that it expected to suffer another significant loss related to its multi-billion dollar investment in Canopy Growth, raising new questions about the likely evolution of the partnership.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Constellation Brands in a deposit with the US Securities and Exchange Commission, it will experience an adjusted pre-tax loss of approximately $ 54.8 million in the current quarter due to Canopy's growth. Due to the accounting treatment of Constellation's participation in Canopy, the beverage giant must incorporate the impact of the marijuana company on Constellation's financial results with a two-month delay. The loss brings the total semiannual sum on Constellation's net profit to $ 109.2 million, with tax benefits providing only a compensation of about 30%. "Data-reactid =" 32 "> Constellation Brands said in a document filed with the US Securities and Exchange Commission Due to the accounting treatment of Constellation's stake in Canopy, the beverage giant must incorporate the impact of the Marijuana Company on Constellation's Financial Results with: The loss brings the total sum of Constellation's construction to $ 109.2 million, with tax benefits only offsetting about 30%.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "There has been a lot of news about the negative things that Constellation said about Canopy but the Corona Maker was pretty balanced about his views on the cannabis society. Despite concerns over financial results, Constellation likes the fact that Canopy is making aggressive acquisitions and is looking to enter the US hemp market. CEO Bill Newlands still sees the investment in Canopy as a positive long-term effect. No company likes to lose money, but Constellation still seems confident that Canopy Growth will be a long-term investment. "Data-reactid =" 33 "> Constellation's negative comments about Constellation have been many, Canopy, but the Corona manufacturer has in fact been quite balanced about its view of the cannabis-producing society. Concern over financial results, Constellation likes the fact that Canopy is making aggressive acquisitions and is seeking to enter the hemp market in the US No business likes to lose money, but Constellation still seems confident that Canopy Growth will be profitable in the long run.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "More from The Motley Fool"data-reactid =" 34 ">More from The Motley Fool
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Dan Caplinger has no position in any of the actions mentioned. Motley Fool recommends Constellation Brands. The Motley Fool has a disclosure policy."data-reactid =" 37 ">Dan Caplinger has no position in the mentioned actions. Motley Fool recommends Constellation Brands. Motley Fool has a disclosure policy.
<p class = "canvas-atom-text-canvas Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "This article was originally published on Fool.com"data-reactid =" 38 "> This article was originally published on Fool.com
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