Canopy Growth shares were under pressure for a second day as analysts questioned whether the Canadian cannabis grower could reduce it cash burn and turnaround operations. Benchmark slashed its price target on the firm to zero.
The stock has dropped 78% this year amid a broader selloff in the increasingly competitive marijuana market and little progress on federal legislation in the US, closing unchanged at C$0.68 Monday. Its market capitalization has slumped from C$25 billion ($19 billion) in 2021 to less than C$400 million, leading to its expulsion from the S&P/TSX Composite Index earlier this month.
In a note Monday cutting his price target to zero, Benchmark analyst Mike Hickey said Canopy Growth’s management was unlikely to be able to turnaround performance. The firm, which acknowledged a going concern risk in its most recent annual report, “may not be able to continue operations and meet its financial obligations,”…
