CGC shares join cannabis selloff as Canaccord lowers price target (NASDAQ:CGC)

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Canopy growth (NASDAQ: CGC) led a sell-off among cannabis players on Tuesday after Canaccord Genuity lowered its price target by about 40% ahead of the Canadian licensed producer’s fiscal 2022 Q4 revenue slated for Friday.

Maintaining the sell rating on the stock, analyst Matt Bottomley cut the price target to C$6 from C$10 per share.

It forecasts Canopy (CGC) to report net income of C$125.7m for the quarter, indicating a sequential decline of approximately 11%, Bloomberg reported.

Citing headwinds impacting growth across all Canopy (CGC) business units, the analyst added, “…specifically, we believe the quarter will represent another period of sequentially weaker sales due of its penetration among adults in Canada”.

“As telegraphed in its previous earnings call, we believe that as part of the FQ4/22 report, the company may also announce further cost reduction efforts and strategic updates, which may include additional infrastructure closures. , operational downsizing and potential management changes at the top,” Bottomley wrote.

Canadian rivals Canopy (CGC), HEXO Corp (HEXO), Aurora Cannabis (ACB) as well as US MSOs GrowGeneration (GRWG) and Cresco Labs (OTCQX:CRLBF) were among other notable declines in the cannabis space today. today.

Read: Canadian LP, Sundial Growers (SNDL) surged ahead of its Q1 2022 financials last week

Eleanor C. William