Canopy Growth Corp. (WEED:CA) (CGC)
Analyst Update
Canopy Growth faced a sharp reduction in its outlook as Bernstein cut its 12 month target forecast to $2.50 from $5.30, underscoring persistent and structural challenges within the Canadian cannabis sector. The sizable downgrade reflects ongoing pressure from weak consumer demand, pricing compression, and an intensely competitive market that continues to limit margin recovery across licensed producers.
Bernstein’s valuation adjustment also points to concerns around Canopy’s path to sustainable profitability. Despite restructuring efforts and cost-reduction initiatives, the company remains constrained by high operating costs, regulatory hurdles, and limited catalysts for near-term revenue acceleration. The broader sector backdrop characterized by oversupply, slow retail expansion in certain provinces, and an uncertain regulatory environment further clouds the earnings outlook.
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