Buy Canopy Growth for its Leading Market Share & ManagementWhats new. In the past month, a number of cannabis companies discussed the virus impact during a recent wave of quarterly earnings calls. But as Cowen analyst Vivien Azer wrote in a note on Friday, the reports themselves were related to the fourth-quarter of the 2019 calendar year. While a supply glut was expected in Canada, four of the 13 companies we benchmark saw sequential revenue declines, coupled with inventory writedowns, as well as costs related to rolling out new cannabis 2.0 products like vapes, edibles, and beverages, she noted. Due to Covid-19, she lowered revenue estimates for most Canadian growers. One exception was Canopy Growth (CGC), which Azer wrote looked like a dominant player in the fourth quarter of 2019, with a 30% share of recreational pot sales in 2020. Canopy was most successful in leveraging its scale to capitalize where competitors either continued to ramp supply for adult use sales or prioritized medical use sales, Azer noted. Nevertheless, share mix remains imbalanced and following WEED, the following seven LPs held between 7%-13% market share of 2019 sales. Looking ahead. Though Canopy trades at a premium to peers, Azer called it justified. She cites its leading market share and the strongest management team among Canadian growers. In Canada, Azer has Market Perform ratings on Aurora Cannabis, Cronos Group (CRON), Sundial Growers (SNDL), and Neptune Wellness Solutions (NEPT). She has an Outperform rating on Canopy Growth, as well as a handful of U.S. growers like Cresco Labs (CRLBF), Curaleaf Holdings (CURLF), and Green Thumb Industries (GTBIF). Ultimately, we are more constructive on U.S. cannabis as Canada works through its challenges, she added. https://www.google.com/amp/s/www.nasdaq.com/articles/buy-canopy-growth-for-its-leading-market-share-and-management-team-analyst-says-2020-04-24%3famp