Cantor Fitzgerald cuts Canopy Growth price target on lower sales

MW Cantor Fitzgerald cuts Canopy Growth price target on lower sales

Canopy Growth Corp. (WEED.T) analyst Pablo Zuanic on Monday cut his 12-month price target on Canopy Growth Corp. , (WEED.T) to C$21 from C$30.50 on a lower sales outlook for the Canadian cannabis company amid price pressure in the business. Zuanic reiterated a neutral rating on the stock and said he expects September quarterly sales to fall to C$135 million, compared to the analyst consensus of C$156 million. "We agree that Canopy Growth, under CEO David Klein, has made significant strides [by] cutting costs, refocusing the business, building a U.S. ecosystem for growth now in CBD/consumer packaged goods and in THC in the future upon federal permissibility," he said. While the company will benefit from a full quarter of its recently acquired Supreme Cannabis business, it will be offset by a low teens decline in the base domestic cannabis business, he said. Canopy is attempting a pivot away from value-price cannabis, but results so far are mixed, he said. Shares of Canopy Growth are down 40% so far this year, compared to an 8.6% rise by the Cannabis ETF (THCX). Shares of Canopy Growth dipped 1.5% in pre-market trades.