Attention from U.S. analyst drives Canopy Growth shares up 25%

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Editor's Note

This story was updated with Canopy Growth's share price performance on Thursday.

Shares of Canopy Growth shot up Wednesday and Thursday on news that a major Wall Street bank is bullish on the licensed cannabis producer.

American investment bank Piper Jaffray waded into the cannabis waters this week with the announcement that it would initiate coverage of British Columbia’s Tilray and Smiths Falls-based Canopy Growth (TSX:WEED)(NYSE:CGC). Analyst Michael Lavery gave both firms “overweight” ratings, sending Canopy shares up more than 13 per cent on Wednesday.

The stock continued its upward trajectory on Thursday, rising another 12 per cent to close the day at $49.82 – its highest price so far in 2019 but still far below the highs the stock was seeing before the legalization of recreational cannabis in Canada last October.

Elsewhere Wednesday, Canopy announced it had launched a new subsidiary in Peru to tackle the country’s emerging medical-use cannabis market. Spectrum Cannabis Peru will operate through Canopy’s Latin American network of companies and focus on education efforts ahead of the country’s medical pot rollout.