Shares of Canada’s Canopy Growth Corp. were heading higher on Friday after getting a price target hike from Piper Jaffray.

The stock soared over 9% after analysts Michael Lavery and Jeffrey Kratky late Thursday raised their price target to $60 from $40. The two also reiterated their overweight rating on shares.

According to Lavery and Kratky, Canopy Growth is in a strong position to benefit from growth in the global cannabis market, which they estimate to be worth $250 billion to $500 billion long term.

“We believe the long-term growth can be significant – both from transitioning illicit trade to legal sales, medical sales, and from transitioning sales in health & wellness categories to CBD-infused products,” Lavery and Kratky noted.

The two also called the company’s approval from New York to process and produce hemp “a tangible first step forward in the U.S. that points to the beginning of a long U.S. growth trajectory.”

Disclaimer: We have no position in Canopy Growth Corp. (NYSE: CGC) and have not been compensated for this article.

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