In a recently released analyst research report, Piper Jaffray’s Senior Research Analyst covering packaged food, tobacco, and cannabis, Michael Lavery, lowered his revenue estimates for Canadian cannabis giant Canopy Growth Corp. (TSX:WEED) (NYSE:CGC).
This adjustment to guidance comes just a few days after Vivien Azer, Cowen’s managing director, and senior research analyst specializing in beverages, tobacco, and cannabis sectors, tempered Wall Street’s expectations for the whole Canadian cannabis sector, citing similar headwinds.
Despite this, Lavery still reiterated his Overweight rating on shares of Canopy Growth with a $60 price target that suggests some decent upside from Friday’s close of $56.31 CAD per share on the TSX.
According to TheFly, “Piper Jaffray analyst Michael Lavery trimmed his Q4 revenue estimates for Canopy Growth to reflect a more conservative build, based on early quarter Health Canada data. Based on April channel checks, product supply to retailers has recently improved, and stores are now maintaining some product inventory, Lavery tells investors in a research note However, Health Canada January industry data show industry momentum ramping up a bit more slowly than expected, adds the analyst. As such, Lavery lowered his Q4 revenue estimate for Canopy Growth to C$96.8M from C$117.6M. Capacity, scale and execution will continue to matter for the next 12-24 months, as growing supply catches up with strong demand in both Europe and Canada, says the analyst. He considers Canopy well positioned relative to its peers on these measures. Lavery keeps an Overweight rating on Canopy Growth shares with a $60 price target.”
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