Saturday, July 5, 2025

Latest

Bank Of America Upgrades Canopy Growth’s Price Target To C$36 From C$30

Last week, Canopy Growth (TSX: WEED) (NASDAQ: CGC) reported its fiscal second quarter 2021 financial results. The company reported $135.3 million in revenue, up 77% year over year, a net loss of $96.6 million, and a free cash flow of ($190.4) million.

Bryan Spillane, BofA’s analyst, raised their 12-month price target to C$36 from C$30 and reiterated their buy rating following the results, citing, “We see mgmt. changes, right-sizing of operations and its enviable cash and share position as all reasons to believe that Canopy can be a LT leader in the cannabis sector.”

Spillane says that, “Performance metrics make some progress.” New products and better supply attainment levels grew to above 90% from 81% last quarter. He says that they had a, “Resilient performance during a pandemic with adj net sales +24% YoY.” While adjusted EBITDA loss narrowed to ($87) million and that Canopy is on track to improve to 40% gross margin over time.

Bryan Spillane lists his key takeaways from this quarter, which he separates into three different categories. The first one being “Momentum is building across key businesses,” as Canopy has grown its Canadian recreational sales 178% year over year, 15.5% market share in Canada, #1 market share in Germany, and #2 market share in Canadian medical. He also mentions the new product lines in the U.S markets.

The second takeaway he mentions is “Improving execution & agility.” He says that Canopy’s fill rate is consistently above 90% in Canadian recreational business to business with management’s goal being “at least 95%”. He also says Canopy has “made progress in its comprehensive flower quality improvement program,” and is “moving quickly to streamline its supply chain and operations.”

The last key takeaway is that Canopy is accelerating its path to profitability. Spillane says that Canopy’s gross margin grew from 7% to 19% this quarter, while selling, general, and admin costs are down 26% quarter over quarter, and management has said that they are finding additional saving opportunities in its COGS, G&A, and inventory.


Information for this briefing was found via Sedar and Refinitiv. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Dundee Acquires Adriatic Metals: The Balkan Growth Strategy

Gold Drilling Scaled to 60,000 Meters: How Big Can This Get? | Roger Rosmus – Goliath Resources

Baselode Energy To Acquire Forum Energy: The Merger Of Equals Deal

Recommended

Antimony Resources Drills 4.17% Antimony Over 7.4 Metres At Bald Hill

ESGold To Expand Mine Building At Montauban In Advance Of Gold & Silver Production

Related News

Magna: BMO Expects A Poor Quarter After Conducting Channel Checks

Magna International (TSX: MG) is expected to report its third-quarter financial results on November 5th...

Friday, October 29, 2021, 07:33:00 AM

Tilray Sees Jefferies Lower Target Due To Canadian Cannabis Headwinds

Jefferies lowered their price target on Tilray Brands (TSX: TLRY), after updating their outlook, saying...

Sunday, April 10, 2022, 01:03:00 PM

Tesla: Consensus Earnings Expectations For Q2

Tesla (NASDAQ: TSLA) will be reporting their second quarter financial results on July 26th after...

Sunday, July 25, 2021, 11:33:00 AM

Artemis Gold: BMO Lifts Price Target After Streaming Deal

On December 14th, Wheaton Precious Metals Corp. (TSX:WPM) announced that it has entered into an...

Saturday, January 1, 2022, 12:31:00 PM

Starbucks: Analysts Expect Q1 Revenues Of $7.95 Billion

Starbucks (NASDAQ: SBUX) will be reporting its first quarter financial results on February 1st before...

Sunday, January 30, 2022, 05:29:00 PM