Canopy Growth upgraded to Market Perform from Underperform at Bernstein

Bernstein analyst Nadine Sarwat upgraded Canopy Growth to Market Perform from Underperform. When the firm had initiated on North American cannabis names last November, expectations for the sector were "still lofty" and a belief by some that SAFE Banking could pass "added to the optimism." Canopy Growth, the firm’s high conviction short at the time of the initiation, was trading as if U.S. federal legalization was "imminent," but its share price has fallen about 55%, more than any other name in the firm’s coverage of the space, over the last five months, Bernstein tells investors. The company still faces headwinds from the structural challenges of the Canadian recreational cannabis market, but the firm says it believes these are now "largely priced-in."