Analyst Makes Another Bullish Adjustment to CGC Stock Price Target

CGC shares are eyeing their highest close in months

Canopy Growth Corp (NYSE:CGC) is trading up 6.1% this morning at $46.92, after Piper Jaffray again weighed in bullishly on the weed stock. The brokerage firm -- which earlier this month made public its positive view on the cannabis space -- boosted its price target on CGC shares to $60 from $40. In the note, analysts called out the company's approval for a state hemp license in New York as another sign that there's a long runway for the cannabis industry in the U.S. Meanwhile, not only does the new target price in strong upside for the shares, but it stands in record-high territory, as well.

If Canopy Growth can hold these levels, it would notch its highest close since Oct. 19. So far this year, the shares have outperformed in a big way, as they closed 2018 down at $26.87. What's more, today's gains put the equity above the key $45 price point that's oscillated between support and resistance since July.

Some data suggests many are bullish on CGC, with the majority of analysts recommending to buy the stock, and options traders at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) gravitating to long calls over puts. On the other hand, the 23.4 million shares sold short represents a week's worth of buying power, going by average daily trading volumes -- what we'd consider an elevated reading.

Either way, it's seemingly not a bad time to speculate on Canopy with short-term options, judging by its Schaeffer's Volatility Index (SVI). This reading of 75% sits in the 34th annual percentile, hinting at lower-than-normal premiums for near-term contracts.