Canopy Growth logo

CGC - Canopy Growth News Story

$17.44 -0.5  -2.7%

Last Trade - 7:45pm

Sector
Healthcare
Size
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
 urn:newsml:reuters.com:*:nL4N2DB2MM   
    ** At least 5 brokerages trim PTs, with CIBC Equity Research
downgrading stock to "neutral" from "outperform"; BMO cuts to
"market perform"

    
    FALLING MARKET SHARE A CONCERN
    
    ** 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)
 ((Arundhati.Sarkar@thomsonreuters.com; +1 646 223 8780 Ext:
2776; Reuters Messaging:
arundhati.sarkar.thomsonreuters.com@reuters.net))
© Stockopedia 2020, Refinitiv, Share Data Services.
This site cannot substitute for professional investment advice or independent factual verification. To use it, you must accept our Terms of Use, Privacy and Disclaimer policies.