7 Key Takeaways From Canopy Growth Corp’s Latest Earnings Release

On Friday, Canopy Growth Corporation (TSX: WEED) (Nasdaq: CGC) released first quarter financial results that showed strong growth in the amount of cannabis that was sold. 

​​After Canopy Growth reported quarterly financial results, a few broker-dealers issued new price targets on the operators.  The changes to Canopy Growth include:

1. Canaccord Genuity lowered its price target to C$25 from C$30
2. CIBC lowered its price target to C$27 from C$30
3. Piper Sandler lowered its price target on Canopy Growth to $19 from $24
4. Stifel lowered its price target on Canopy Growth to C$18 from $21

Today, we want to highlight 7 key takeaways from Canopy Growth’s earnings report and believe our readers need to be aware of this trend:

1. When compared to the same period last year, Canopy Growth recorded a 23% increase in total revenue. The growth was driven by increased sales of cannabis and other consumer packaged goods (CPG) 
2. According to Canopy Growth’s internal proprietary market analytics platform, the company had the largest market share of Canada’s recreational cannabis market 
3. Completed the acquisition of Ace Valley and Supreme Cannabis, and is focused on seamlessly integrating the assets 
4. Canopy Growth has a large innovation pipeline with over 100+ SKUs across key product categories. The new products are expected to launch and be available between the second and the fourth quarter of 2022
5. The United States remains a major focus for Canopy Growth as it continues to increase brand awareness through broad portfolio of innovative cannabidiol (CBD) and CPG brands. The relationship with Martha Stewart is proving to be a growth driver for this aspect of the business
6. The management team reiterated its commitment to accelerating top-line growth in the second half of fiscal 2022 and achieving positive Adjusted EBITDA by end of fiscal 2022.
7. As of June 30th, Canopy Growth reported to have $2.1 billion of cash and short-term investments 

If you are interested in learning more about Canopy Growth’s earnings report, please send an email to support@technical420.com with the subject “Canopy Growth” to be added to our distribution list. 

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Michael Berger is Managing Partner of StoneBridge Partners LLC. SBP continues to drive market awareness for leading firms in the cannabis industry throughout the U.S. and abroad.

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