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GW Pharmaceuticals: Analysts’ Ratings, Price Target

UK-based cannabis producer GW Pharmaceuticals (GWPH) recently reported its third-quarter results. Although the company’s reported financials are better than the estimates, the company’s stock has fallen 18% since the announcement. GWPH is currently trading at $109.38. The company’s current consensus target price implies a potential upside of 82.75%.

Company financials

GW Pharmaceuticals recently reported its financial results for the third quarter. The company reported revenue of $90.97 million, a sequential increase of 26.27%. Its actual revenue is 6.62% more than the estimates. The company reported a net loss of $13.76 million, 48% better than the estimates.

The company’s major revenue originates from the sale of Epidiolex, a medicine used to treat epilepsy. The company reported $86.1 million from the sale of Epidiolex, which is approximately the same as the analysts’ forecasts.

Analysts’ recommendations and ratings

Currently, 15 analysts cover GWPH stock. The number of analysts covering the stock has increased from 13 last month to 15 this month. Of these 15 analysts, five analysts recommend a “strong buy,” and 10 analysts recommend a “buy.” There are no “hold” or “sell” recommendations.

The consensus target price of the stock currently stands at $206.93, implying a decline of 8.6% from last month.

Recommendation and target price

Recently, several analysts have changed their target prices for GW Pharmaceuticals. Last week, J.P. Morgan reduced its target price from $232 to $187. This implies a decline of 19.39%. Further, Morgan Stanley reduced its target price from $233 to $231.

Oppenheimer, Stifel, and Guggenheim also reduced their target prices on GWPH stock. Oppenheimer lowered its target price from $233 to $222. Stifel reduced its target price from $228 to $215. Guggenheim lowered its target price from $245 to $185, implying a decline of almost 25%.

Last month, two more analysts started covering the stock. Wainwright initiated the stock with a “buy” rating and a target price of $170. Further, Needham started covering the stock with a “buy” rating and a target price of $200. Neither of these two new analysts changed their ratings or target prices after the release of the company’s financials.

Trend analysis

GW Pharmaceuticals stock is currently trading at $109.38, which implies an increase of 16.26% this year. Although its stock has gained value from the start of the year, it has been declining over the past few months. The stock has fallen by 36.5% in the last six months. The stock also shows a decline of 15.39% this month.

GW Pharmaceuticals’ third-quarter results were better than the analysts’ estimates. In spite of this, the stock price has declined by 18% from the release of its results. Five analysts reduced their target prices immediately after the results were released.

GW Pharmaceuticals versus its peers

Like many of its peers, GWPH’s stock value has been declining for the last few months. The company’s stock value has fallen more than 32% in the last three months. Currently, 15 analysts cover GWPH stock. The current consensus rating of the stock is 1.7.

Aurora Cannabis’s (ACB) stock value has fallen by 44% in the last three months. Currently, 17 analysts cover the stock. The consensus rating of the stock is 2.6. Canopy Growth’s (CGC) stock value has fallen 38% in the last three months. With 20 analysts covering the stock, its consensus rating is 2.5.

Tilray (TLRY) stock has fallen more than 48% in the last three months. With 19 analysts covering the stock, its consensus rating is 2.8.

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