Earnings season has started to heat up for Canadian cannabis producers and we believe that many of these operators need to start putting up real numbers before the market completely loses faith in them.
Although there are several industry leaders that are based in Canada, there are a number of companies that are also close to being defunct as possible. Going forward, we expect to see a little more choppiness and believe that selectivity will be more important than ever as it relates to Canadian Licensed Producers (LPs).
Today, we wanted to highlight 3 Canadian LPs that recently reported quarterly financial results and believe that these are opportunities to be aware of. These operators have reported impressive basis on a year-over-year basis and want to highlight the responses that broker-dealers have had to the results.
On August 10th, Canopy Growth Corporation (WEED.TO) (CGC) reported first quarter financial results that showed impressive growth and the market responded favorably to the numbers. Several broker-dealers have changed their price targets on Canopy Growth following the quarterly report and have highlighted the changes below:
- Canaccord Genuity raised its price target to $22 from $21
- CIBC lowered its price target to $25 from $26
- Cowen and Company raised its price target to $30 from $27
- Cormark raised its price target to $23.50 from $21 (CAD)
After Canopy Growth reported earnings, Tilray Inc. (TLRY) released second quarter financial results and the market seems to be less impressed with the results. After the announcement, several broker-dealers changed their price target on the Canadian cannabis producer and have highlighted the changes below:
- Piper Sandler lowered its price target to $15 from $20
- Cowen and Company lowered its price target to $8.50 from $9
- Stifel lowered its price target to $6 from $6.50
Last week, MediPharm Labs Corp. (TSX: LABS) (OTCQX: MEDIF) (FSE: MLZ) released second quarter financial results and reported several substantial milestones. Although we are favorable on how the story has transformed into a domestic and international cannabis oil company, the stock is currently trading in a range and we are watching for a breakout. The company did not receive many upgrades or changes from broker-dealers and we have highlighted the changes below:
- Canaccord Genuity reiterated its Speculative Buy Rating and its $2.75 (CAD) price target
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