Canopy Growth Corp. Soars 15.7% on Cannabis Rescheduling Optimism

Canopy Growth Corp. (CGC) rose 15.7% on Monday due to optimism surrounding potential cannabis rescheduling. Jefferies gave Tilray Brands a "buy" rating with a higher price target, citing benefits from potential federal restrictions loosening. Canopy Growth is positioning itself for the US market, creating a new vehicle, Canopy USA, to tap into the projected $50 billion growth in the US cannabis market.

Title: Cannabis Sector Revitalized: Canopy Growth and Tilray Brands Benefit from Potential Rescheduling

July 02, 2025 — The cannabis sector experienced a significant boost in optimism and share prices following recent comments by President Trump on marijuana rescheduling. This potential federal policy shift has reignited investor enthusiasm and sent several cannabis stocks soaring. Two notable companies, Canopy Growth Corp. (CGC) and Tilray Brands Inc. (TLRY), have emerged as potential beneficiaries of this regulatory change.

Canopy Growth Corp. (CGC) saw its stock rise by 15.7% on Monday, driven by optimism surrounding the potential rescheduling of cannabis. The company is positioning itself for the U.S. market by creating a new vehicle, Canopy USA, to tap into the projected $50 billion growth in the U.S. cannabis market. Canopy Growth has been streamlining operations by exiting lower-margin businesses and selling non-core assets to boost liquidity and reduce operating expenses. This strategic move is aimed at improving the company's financial health and clearing the path toward profitability [1].

Tilray Brands Inc. (TLRY) has also seen a significant boost in its stock price, jumping 17.7% amid reports that President Donald Trump is considering reclassifying marijuana as a less dangerous drug. Jefferies analyst Kaumil Gajrawala raised his price target for Tilray to $2.00, indicating a potential upside of another 50% from current levels. Gajrawala maintains a "Buy" rating on the stock, citing the possibility that the Trump administration will reschedule cannabis as a Schedule III drug, thereby removing federal restrictions and expanding access [2].

While the potential rescheduling of cannabis from Schedule I to Schedule III in the United States represents a significant federal policy shift, it falls short of full legalization. However, it marks progress as Congress reviews bills related to banking, access, and reform in the cannabis sector. This change could provide secondary benefits such as lower taxes and easier research opportunities for cannabis companies. Tilray is identified as "the biggest potential beneficiary" of these regulatory developments [2].

Tilray Brands Inc. has also been expanding its operations in Europe. The company has entered into a strategic partnership with Italian pharmaceutical company Molteni to expand its European market presence. This move comes as European cannabis markets continue to mature, with Germany driving the charge in medical cannabis adoption [2].

Despite the mixed views on Tilray's stock from Wall Street, the potential rescheduling of cannabis could significantly benefit the company. Investors should closely monitor the regulatory developments and Tilray's progress in the European market.

References:
[1] https://www.nasdaq.com/articles/3-cannabis-stocks-watch-after-trumps-marijuana-rescheduling-signal
[2] https://www.ainvest.com/news/jefferies-raises-tilray-stock-price-target-33-sees-50-upside-potential-2508/