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CGC - Canopy Growth News Story

$17.44 -0.5  -2.7%

Last Trade - 7:45pm

Large Cap
Market Cap £5.09bn
Enterprise Value £4.41bn
Revenue £228.5m
Position in Universe 974th / 6400

BUZZ-Street View: Pot producer Canopy's near-term headwinds may pressure stock

Mon 1st June, 2020 12:01pm
** Canopy Growth  WEED.TO ,  CGC.N  reported a
bigger-than-expected quarterly loss as its recreational cannabis
business lost market share due to delayed product launches and
the company abandoned a profitability target
    ** WEED closed down 6.4% on Friday following results*:nL4N2DB2MM   
    ** At least 5 brokerages trim PTs, with CIBC Equity Research
downgrading stock to "neutral" from "outperform"; BMO cuts to
"market perform"

    ** CIBC (PT: C$26) says WEED is long-term winner, but there
are near-term challenges
    ** "Canopy's strategy is sound, but will take time, and
current valuation limits material upside"
    ** BMO Capital Markets (PT: C$24, "market perform")
surprised by slower-than-expected operational reset and tone
towards right-sizing the business
    ** Concern now is that management's growth outlook may be
too optimistic in current environment, visibility towards
turnaround has become less clear - BMO
    ** Canaccord Genuity (PT: C$21, "hold") says it seems clear
CGC lost market share in the quarter, as many of its closest
peers saw recreational volumes increase 
    ** RBC Capital Markets (PT: C$24, "sector perform") expects
ongoing operational changes to benefit financial results, offset
by COVID-19 and other headwinds in near term
    ** Benchmark (PT: C$27, "buy") says WEED lost meaningful
shares in domestic dry bud sales and had little to offer in the
Cannabis 2.0 opportunity
    ** Eight Capital (PT: C$23, "neutral") expects stock to face
pressure in near-term based on headwinds from weaker demand
environment, and impacts from efforts to drive efficiencies

 (Reporting by Arundhati Sarkar in Bengaluru)
 ((; +1 646 223 8780 Ext:
2776; Reuters Messaging:
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