On Monday, its stock traded for $45 per share. By Tuesday, it had shot up to $61 after Morgan Stanley upgraded it to "overweight" and gave it a $103 price target. The investment bank's thesis is that a cannabis-based drug GW Pharmaceuticals is developing could soon get approval to treat pediatric epilepsy -- to learn more about this, click here. And if that happens, in turn, Morgan Stanley predicts that the company could generate $1.35 billion in sales.
Suffice it to say, the news had the financial world atwitter. Among others, it prompted CNBC's Jim Cramer to proclaim that, "When people ask me, Jim, what marijuana stock do you like? [...] I always go with GW Pharmaceuticals. This is a real company."
But does this mean the average investor should buy stock in this high flying cannabis-focused biopharmaceutical company? In the video below, Motley Fool contributor John Maxfield shares his take.
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John Maxfield has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.