Canopy (CGC) Goes 15.7% ‘High’ on Cannabis Rescheduling Optimism

We recently published 10 Big Names With Surprising Gains. Canopy Growth Corp. (NASDAQ:CGC) is one of the top performers of Monday.

Canopy Growth extended its winning streak to a third consecutive day on Monday, jumping as high as 15.7 percent during the day before closing at $1.44, after an analyst’s bullish rating on one of its peers spilled over to its stock.

In a market note, Jefferies gave Tilray Brands Inc.—one of Canopy Growth Corp.’s (NASDAQ:CGC) counterparts—a “buy” recommendation with a higher price target, saying that it would benefit from a potential rescheduling of cannabis use to a lesser federal restriction.

Earlier this month, President Donald Trump said that his administration was looking to loosen federal restrictions on the use of cannabis, which would see the likelihood of reclassifying it to Schedule II from I at present.

Drugs under Schedule II are classified with a high abuse risk but also have safe and accepted medical uses in the US.

Meanwhile, Schedule I drugs, where cannabis currently falls under, are those with a high abuse risk, without any safe and accepted medical use.

While originally a Canadian company, Canopy Growth Corp. (NASDAQ:CGC) is positioning itself for the US market, creating a new vehicle dedicated to such operations.

Through Canopy USA, the company is looking to ride into the projected $50 billion growth in the US cannabis market by next year.