DEA Cannabis Rescheduling Uncertain: Canopy Growth Investors on Edge

The rescheduling of cannabis in the USA will soon start moving again, but investors are hardly hoping for positive impulses for Canopy Growth and Co.

On January 21st, the DEA will begin the process of rescheduling cannabis, reports “Der Aktionär”. This is to determine whether the drug will no longer be on the same level as heroin or LSD. A downgrade to Schedule III would allow doctors to prescribe cannabis as a medicine.

However, the prospects for a successful conclusion to the process have become seriously bleak. Just one day before it begins, Donald Trump will move into the White House and the Republicans will have the majorities in both chambers of government.

Poor prospects for Canopy Growth?

Trump himself has recently expressed his support for a more relaxed approach to cannabis. However, the views of Republicans differ sharply from this. Experts expect that this will influence the DEA’s decision and that the rescheduling could ultimately be canceled by the change of administration.

Should investors sell immediately? Or is it worth investing in Canopy Growth ?

Of course, we can only speculate about this. But the prospect of better political conditions drove Canopy Growth shares up significantly in the spring of 2024. The chart clearly shows that investors have also lost courage. At the weekend, the ticker was only at 2.88 euros, a good 30 percent less than a year ago.

Canopy Growth needs backing

The skepticism is understandable. Canopy Growth is very likely dependent on political backing to be able to find its way into the black.

After legalization in Germany has already gone poorly from an investor’s perspective, a failure of rescheduling in the USA could put the icing on the cake of the bad mood. Aside from sheer hope, there is unfortunately not much that would speak in favor of an investment at the moment.

Canopy Growth stock: Buy or sell?

The latest Canopy Growth figures speak for themselves: Canopy Growth shareholders urgently need to take action.

After a weak year in 2024, the US cannabis sector, including Canopy Growth, is showing a surprisingly positive development at the start of the year. This could indicate a trend reversal, which is making investors sit up and take notice. However, the forecast remains uncertain as the industry continues to struggle with challenges. A look at the potential remains exciting nonetheless.

To decide whether a stock purchase makes sense, investors consider various criteria. They take into account analysts’ assessments of the company, the shareholder structure, and the fundamental and technical situation. With this overview, they can evaluate the mixed prospects of a company.

Canopy Growth share: forecast and price target 2025

The analysts’ assessment is important, so let’s take a look at the opinion. There are currently 10 assessments available. The average assessment, i.e. the rating, is ” Hold “. First, we’ll look at how many of them are in favor of selling now: Sell ( 1 ) and Strong Sell ( 3 ). It is of course positive that some are convinced that buying Canopy Growth shares is the right thing to do. Buy ( 1 ) and Strong Buy ( 0 ).

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(Featured image by  Shelby Ireland via Unsplash)

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