The Globe and Mail reports in its Thursday, Feb. 2, edition that CIBC World Markets analyst John Zamparo still considers Canopy Growth an "underperformer." The Globe's David Leeder writes in the Eye On Equities column that Mr. Zamparo
shaved his share target by 50 cents to $2.50. Analysts on average target the shares at a lofty $4.06. Mr. Zamparo says in a note: "We continue to expect Canopy Growth to show significant operating losses and minimal sales growth in FQ3. Cannabis GM per cent likely remains in the low-single digits, marketing and distribution investments will weigh on profitability of the high growth BioSteel segment, and enterprise-wide cost savings initiatives will take time to be fully captured. With U.S. regulatory reform likely deferred and no visibility to profitability, we reduce our price target." The Globe reported on Oct. 27 that Canaccord Genuity analyst Matt Bottomley had upgraded his recommendation for Canopy Growth to "buy" from "hold." The shares could then be had for $4.29. The Globe's guest columnist Philip MacKella said on Nov. 4 that Canopy Growth was not a good contrary bet play. He noted that Canopy was "losing a stunning amount of money." It was then worth $4.71.
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