Several leading Canadian broker-dealers responded negatively to Canopy Growth Corporation’s (TSX: WEED) (Nasdaq: CGC) fourth quarter financial results and have lowered their price target on the company.
Canopy Growth CEO stated that he was a little concerned about the headwinds that it continues to face as a result of the Covid pandemic. These comments seem to have spooked the market and Canopy Growth came under additional pressure after its post-earnings report conference call and we will monitor the trend from here.
Below, we have highlighted the ratings and price target changes that were reported after the first quarter earnings report. When 6 broker-dealers lower their respective price targets on a company, we find the trend to be of significance and believe our readers should be aware of this.
- Alliance Global Partners lowered its price target to C$32 from C$40
- CFRA downgraded Canopy Growth from Strong Buy to Buy and lowered its price target to C$45 from C$75
- Cowen and Company lowered its price target to C$39 from C$44
- CIBC lowered its price target to C$36 from C$38
- MKM Partners lowered its price target to C$51 from C$55
- Eight Capital upgraded Canopy Growth from Sell to Hold and lowered its price target to C$29 from C$34.50
- Canaccord Genuity upgraded Canopy Growth from Sell to Hold and lowered its price target to C$30 from C$32
During the quarter, Canopy Growth strengthened its balance sheet by securing a $750 million senior secured term loan that provides it with the ability to raise an additional $500 million in debt. We expect the strength of the company’s balance sheet to play an important role in the performance of the business on a going forward basis and we will monitor how the management team continues to execute on cost cutting initiatives.
If you are interested in learning more about the recent price target changes on Canopy Growth, please send an email to firstname.lastname@example.org with the subject “Canopy Growth Price Target Changes” to be added to our distribution list.
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