Canopy Growth: Cracking The Piggy Bank Again
- Piper Sandler is has downgraded shares of Canopy Growth Corp. (CGC ) to underweight from neutral as it sees continued sales trend pressure.
- The firm has lowered its price target to $7 from $11 (~27% downside).
- Analyst Michael Lavery says that a sum of the parts analysis finds a potential valuation even lower, of $5-$6 per share.
- Bank of America analysts Lisa K. Lewandowski and Bryan D. Spillane have lowered their recommendation on the Canadian marijuana player to Underperform from Neutral, citing challenges in its home market.
- The price target cut to C$10 from C$19 per share implies a downside of ~19.9% to the last close in Toronto Stock Exchange.
-Effective immediately, Mike Lee, Executive Vice President and Chief Financial Officer (CFO), and Rade Kovacevic, President and Chief Product Officer will be stepping down from their respective roles and will depart from the company on December 31, 2021.
-Net revenue dropped by ~2% YoY to C$131.4M as the growth of global net cannabis revenue slowed to ~1% YoY from ~17% YoY in Q1 FY22, bringing C$95M in sales.
-Meanwhile, the Canadian company reported C$71M of gross loss compared to C$27M gross profit in the preceding quarter.