GTBIF - From Underweight To Under Scrutiny: Can Canopy Growth Turn The Tide? Piper Sandler's Forecast On The Weed Giant | Benzinga
Could Canopy Growth Corporation (NASDAQ: CGC) be on the brink of turning its fortunes around, or is the optimism premature?
Michael S. Lavery, a senior research analyst at Piper Sandler & Co., assigned CGC an 'Underweight' rating in his comprehensive analysis, signaling a cautious outlook due to its changing financial situation and strategic efforts.
Lavery's report delves into the complexities of CGC's position within the competitive cannabis sector, balancing the company's operational advancements against the backdrop of looming challenges.
Financial Performance: A Step Forward But Not Without Hiccups
CGC's fiscal third-quarter 2024 earnings revealed a mixed bag of results. The company outperformed revenue expectations, posting net revenues of C$78.5 million, surpassing Piper Sandler's estimate of C$76.2 million.
This uptick in revenue is attributed to CGC's strategic realignment towards becoming a pure-play cannabis entity, following divestitures in non-core segments.
However, the earnings before interest, taxes, depreciation and amortization (EBITDA) fell notably short of projections, underscoring the financial pressures still at play.
The report underlines a significant reduction in cash burn, ...