CGC - Piper Sandler Maintains Underweight On Canopy Growth Stock Calls Cannabis Rescheduling 'Largely Symbolic' | Benzinga
A recent company note from Piper Sandler & Co, by senior analysts Michael S. Lavery and Luke Maloney offers insights into Canopy Growth Corporation's (NASDAQ: CGC) financial performance, valuation and prospects.
The near-term outlook remains cautious, with significant valuation adjustments and an "Underweight" rating from Piper Sandler. Despite positive revenue trends amid economic challenges, investors should note ongoing efforts to achieve profitability, potential regulatory impacts and market focus shifts.
Financial Performance And Projections
Canopy Growth's financial results for fiscal year 2024 show net revenues of C$72.9 million, surpassing the estimate of C$69.5 million. However, EBITDA was significantly below expectations. The company aims to achieve positive adjusted EBITDA by the second half of fiscal year 2025 with estimates of C$0.8 million in the third quarter and C$1.4 million in the fourth quarter.
Piper’s company note procured by Benzinga Cannabis revises the company's revenue projections, lowering the fiscal year 2025 estimate from C$304 million to C$297.8 million and the fiscal year 2026 estimate from C$343.9 million to C$322.3 million. The projected earnings per share (EPS) for the fiscal year 2025 is C$(1.63) and for the fiscal year 2026 is C$(1.50).
The company's revenue for the fourth quarter of 2024 includes 33% from non-cannabis segments with Storz & Bickel ...