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Fly News Breaks for November 15, 2019
CGC
Nov 15, 2019 | 08:57 EDT
Compass Point analyst Rommel Dionisio lowered his price target on Canopy Growth shares to $17 from $24 after the company reported "disappointing" Q2 results, including a sharp revenue shortfall that can be largely attributed to retailers lowering their inventory levels, a slower than expected pace of retail store openings, and continued overall pricing pressure in the Canadian market due to oversupply. While the advent of the sale of advanced forms of cannabis such as vapes and edibles in Canada in December should help, he remains concerned on overall Canadian pricing trends given the continued growth in production capacity and recent introduction of value-priced brands in flower/pre-rolls, said Dionisio, who keeps a Neutral rating on Canopy shares.