Canopy Growth price target lowered to $54 from $57 at Piper Jaffray
Piper Jaffray analyst Michael Lavery lowered his price target for Canopy Growth to $54 from $57 citing the company's slower than expected retail rollout. The analyst, however, reiterates an Overweight rating on the shares. Further retail openings in Canada, especially Ontario, will drive Canopy's market growth, but they continue to progress at a very slow pace, Lavery tells investors in a research note. California has $200M in monthly sales while Canada has only $60M, despite similar population sizes, the analyst points out. Further, Lavery believes the termination of Co-CEO Bruce Linton "likely signals more discipline to come." A successor could bring a more disciplined approach that investors are likely to welcome, contends the analyst.