Since earnings were announced, four different analysts have updated their guidance on Canopy Growth Corp. to reflect outlook adjustments ranging from bullish to bearish and everything in between.
As Canopy’s first full quarter with Canadian recreational cannabis sales, the company saw gross revenues soar 350% to $97.7 million CAD from just $21.7 million CAD in the same quarter last year. That being said, Canopy still suffered millions of dollars in losses during Q3, buoyed by its sizeable cash position and large balance sheet.
As a result, GMP Securities‘ Managing Director of Equity Research for Special Situations and Healthcare, Martin Landry, downgraded Canopy from a ‘buy’ to a ‘hold’ and lowered his price target warning shareholders that CGC “may need a pause before the next leg-up.”
CIBC’s John Zamparo, on the other hand, remains unwaveringly bullish with a raised price target and reiterated buy rating.
Piper Jaffray’s Michael Lavery, with a price target lower than Landry’s, is still bullish on Canopy but still went as far as to warn investors that he does not expect the company to generate EBITDA “for the foreseeable future” due to continued investment in infrastructure and R&D, among other things.
Last but not least, Canaccord Genuity’s Matt Bottomley has the lowest price target of them all, at $70 CAD per share. Equivalent to approximately $53.16 USD, Bottomley’s price target reflects the cautious optimism that all Canopy shareholders presumably felt following the recent quarterly results.
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