Cantor Fitzgerald Lowers Canopy Growth Price Target Due To Lower Sales

Canopy Growth Corp. WEED,
-0.48%
CGC,
-0.81%
analyst Pablo Zuanic lowered his 12-month price target on Canopy Growth Corp. on Monday. c:weed,

CGC,
-0.81%
to C$21 from C$30.50 on lower sales prospects for the Canadian cannabis company amid pricing pressure in the company. Zuanic reiterated a neutral assessment of the stock and said he expects quarterly sales to fall to C$135 million in September, compared to the analyst consensus of C$156 million. “We agree that Canopy Growth, under CEO David Klein, has made significant progress [by] reduce costs, refocus the company, build a US ecosystem for growth now in CBD/consumer packaged goods and in THC in the future, subject to federal approval,” he said. While the company will benefit from a full quarter of its recently acquired Supreme Cannabis activities, it will be offset by a low teen decline in basic domestic cannabis business, he said Canopy is trying to take a turn away from value-for-money cannabis, but results so far have been mixed, he said. of Canopy Growth are down 40% so far this year, compared to an 8.6% increase by the Cannabis ETF THCX,
-0.37%.
Shares of Canopy Growth fell 1.5% in pre-market trades.

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