Piper Sandler on Canopy: BioSteel Revenue Was Overstated2023-05-11 09:31:49 AM ET (MT Newswires)
09:31 AM EDT, 05/11/2023 (MT Newswires) -- Michael Lavery over at Piper Sandler noted Canopy's sales trends remain pressured, and that he had recently lowered his BioSteel expectations after reviewing its sell-through trends and estimated trade inventory levels. Now, Lavery noted, Canopy has filed an 8-K indicating that its preliminary review has found "material misstatements" in prior financial statements. It anticipates reducing BioSteel's reported revenues, though its review is not yet complete enough to quantify historical errors. Lavery said BioSteel had been the key driver of the growth outlook. He added fundamentals "remain pressured", and Piper Sandler does not see near-term regulatory catalysts. PS maintained its US$1 price target until it has better visibility, but believes there is likely incremental downward risk to its outlook.