GREY:CNTTQ - Post by User
Post by
kijijion Jul 10, 2019 9:18am
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Post# 29903166
downgrade
downgradeThe Financial Post reports in its Wednesday, July 10, edition that Bank of Montreal analyst Tamy Chen and Royal Bank of Canada analyst Douglas Miehm have downgraded Canntrust Holdings as a result of Health Canada's investigation into the company for growing cannabis in unlicensed areas and subsequently providing "false and misleading" information to the federal agency's inspectors. The Post's Vanmala Subramaniam writes that Ms. Chen downgraded Canntrust from "outperform" to "speculative," and slashed her share target to $6 from $11. Mr. Miehm cut Canntrust to "perform" from "outperform" and reduced his share target to $5 from $13 in light of the concerns over the company's non-compliance at its Pelham, Niagara greenhouse facility. On Monday Mr. Miehm wrote that while the extent of the problems in Pelham came as a surprise, "more concerning to us was that we felt management was not able to fully explain the events leading up to the notice and resultant implications." Ms. Chen said in a note, "It is unclear how the company would have commenced cultivation in unlicensed rooms and we are surprised by this development and the inability of Canntrust's internal operation controls to prevent this."