Canopy Growth: Repricing its Valuation After Historic US Cannabis Reclassification and Turnaround Moves

Canopy Growth's share price has risen 30.8% in the last month after the US government reclassified cannabis to Schedule III. The stock has a 5-year total shareholder return of -99%. The company's turnaround moves, including the planned MTL Cannabis acquisition and recent debt reduction, are being reassessed by investors. The stock is trading at a steep discount to analyst targets, making it a potential contrarian value play. However, regulatory setbacks in key European markets and failing gross margins could unravel the upside case.