Canopy growth (NASDAQ: CGC) led to sales among cannabis players on Tuesday after Canaccord Genuity lowered its price target by as much as ~ 40% ahead of Canadian Licensed Producers’ fourth-quarter earnings for fiscal year 2022, which is scheduled for Friday.
Analyst Matt Bottomley maintained the stock valuation on the stock and trimmed the price target to $ 6 from C $ 10 per share. shares.
He expects Canopy (CGC) to report net sales of C $ 125.7 million. for the quarter, indicating a sequential decrease of ~ 11%, Bloomberg reported.
Referring to headwinds affecting the growth of all business units in Canopy (CGC), the analyst added: “… most notably, we believe the quarter will represent another period of sequentially lower sales from its Canadian adult farms.”
“As telegraphed in its previous earnings call, we believe as part of the FQ4 / 22 reporting that the company can also announce new cost-saving efforts and strategic updates, which could include further infrastructure closures, operational rights sizes and potential top management changes,” he wrote. Bottomley.
Canopy’s (CGC) Canadian rival, HEXO Corp (HEXO), Aurora Cannabis (ACB) along with US MSOs GrowGeneration (GRWG) and Cresco Labs (OTCQX: CRLBF) were among other notable declines in the cannabis field today.