Globe says Canopy Growth lowered to "sell" from "hold" .
Globe says Canopy Growth lowered to "sell" from "hold"
2021-11-09 05:41 ET - In the News
The Globe and Mail reports in its Tuesday, Nov. 9, edition that Canaccord Genuity analyst Matt Bottomley has lowered his recommendation for Canopy Growth to "sell" from "hold." The Globe's David Leeder writes in the Eye On Equities column that Mr. Bottomley says the prospects of a near- to medium-term turnaround at Canopy Growth are fading. Accordingly, the Canaccord stockpicker slashed his share target by $13 to $12. Analysts on average target the shares at $20.74. Mr. Bottomley says in a note: "As the company's turnaround initiatives remain challenged, we believe the overall risk profile of Canopy's ability to steady its Canadian operations and accelerate other international/U.S. growth endeavors is now even further elevated. The company noted that it holds the No. 1 position in premium flower (likely due to the integration of its deal for Supreme Cannabis) while gaining momentum in its vape and edible offerings. Canopy stated that the sequential decline was due to market share softness across flower categories due to 'insufficient supply of indemand attributes.' We find this somewhat troubling given that in addition to supply issues, the company also booked sizable inventory impairments in the quarter."
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