Canopy grower Canopy Growth (CGC) may not have enough bursts to maintain control of almost a third of the country's legal hemp market, GMP Securities reported Tuesday after lowering stocks. Canopy Growth stocks declined, while other marijuana stocks were mixed in the morning trading.
GMP Securities analyst Martin Landry, on Tuesday's study, said he was worried about Canopy's reduction in stock levels, saying they could "hurt
" In our view, Canopy rivals might catch up better stock availability and significant expansion plans, which could lead to a lower market share, "he said," Canopy's growth needs to "better shape its path to profitability," while sales, general and administrative costs are higher than sales. Canopy Growth on its Canadian Beard and, meanwhile, reflects the high expectations of sales, even if the international outlook of the company remains uncertain, he said.
"This impressive performance is justified, given the leading role in the global cannabis. industry, "wrote Landry. "However, given the concerns expressed above, we believe that WEED shares may require pauses before the next stage."
Landry has lowered Canopy Growth shares to keep them from buying. He also reduced his target price to Canopy Growth to Canadian $ 65, from the 70th. Canopy Growth shares fell by 3% to 46.14 on the stock market today. Shares are in a very deep cup – 57% – with a point of purchase 51.91. Breakthroughs from the base are deeper than 40% less inclined to work
Among other marijuana stocks, Cronos Group (CRON) grew by 2.5%. Landry lowered the Cronos Group's shares earlier this month, citing a big run that came out of "immaterial news" from December.
Aurora Cannabis (ACB) dropped 0.6% on the stock market on Tuesday. Aurora remains the highest rated Canadian marijuana stocks from the US. It has 95 Composite Ratings with the best of 99. But its 50-day line has crossed the 200-day line, the bearish signal
Tilray (TLRY) has increased by 0.2%. Aphria (APHA) gained 1.25%.
Canopy Growth reported earnings in the third quarter at noon. The quarter covered three months ending December 30, as well as the first two and a half months of recreational legalization. The company reported that it had $ 22 million Canadian dollars of finished goods during the quarter. It dropped from 56 million Canadians in the previous quarter.
Landry also said that the Canopy inventory of dried kidneys fell during this period in Ontario, Quebec and Alberta, three of the most densely populated provinces in Canada. His analysis did not include oil caps and SoftGel, which accounted for 30% of Canopy Q3 sales. However, the company sold less than a kilogram of pot than expected. Canopy solution to excise tax on medical marijuana will also damage margins
Some industry leaders say that the world of medical marijuana is a bigger selling opportunity. But Landry noted that today the market remains small. Although Canopy Growth has a New York-based hemp license, more regulatory dominance falls before the marijuana industry can move with confidence.
"Global sales of cannabis, with the exception of North America, are still small, the last quarter," wrote Landry, adding: "The deployment of capital in the US is a potential catalyst, but depends on changes in regulation for which visibility is limited and Probably Delay. "
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