In a recently released analyst research report, Piper Jaffray‘s Senior Research Analyst covering packaged food, tobacco, and cannabis, Michael Lavery, cut his price target for shares of international cannabis giant Canopy Growth Corp. (TSX:WEED) (NYSE:CGC) while maintaining an “Overweight” buy rating on the stock.
This adjustment to Lavery’s price target comes just a few days after Merrill equity research analyst Christopher Carey slashed his Canopy price target from $46.00 USD per share down to just $27.00 USD per share.
Far higher than Chris Carey’s, Michael Lavery adjusted his old $49.00 USD price target down to his new CGC price target of $40.00 USD per share, which still implies a hefty potential upside of approximately 73.69% based on CGC’s last traded price of $23.03 USD per share on the NYSE pre-market.
According to TheFly, Piper Jaffray’s Michael Lavery made this price target adjustment “to reflect near-term risks from a slower retail rollout in Ontario and risks to vapor sales from recent headlines.”
Lavery also “expects Canopy’s new management to bring a more disciplined approach to spending and capital allocation that should help the company to continue to grow without needing new capital,” thanks to its roughly $2.3 billion in cash and equivalents.
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