Canopy Growth Corp. WEED, -4.54% CGC, -4.69% analyst Pablo Zuanic on Monday cut his 12-month price target on Canopy Growth Corp. c:weed, CGC, -4.69% to C$21 from C$30.50 on a lower sales outlook for the Canadian cannabis company amid price pressure in the business. Zuanic reiterated a neutral rating on the stock and said he expects September quarterly sales to fall to C$135 million, compared to the analyst consensus of C$156 million. “We agree that Canopy Growth, under CEO David Klein, has made significant strides [by] cutting costs, refocusing the business, building a U.S. ecosystem for growth now in CBD/consumer packaged goods and in THC in the future upon federal permissibility,” he said. While the company will benefit from a full quarter of its recently acquired Supreme Cannabis business, it will be offset by a low teens decline in the base domestic cannabis business, he said. Canopy is attempting a pivot away from value-price cannabis, but results so far are mixed, he said. Shares of Canopy Growth are down 40% so far this year, compared to an 8.6% rise by the Cannabis ETF THCX, -3.91%. Shares of Canopy Growth dipped 1.5% in pre-market trades.
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