The Globe and Mail reports in it Wednesday, Dec. 18, edition that ATB Capital Markets analyst Frederico Gomes has lowered his recommendation for Canopy Growth to "underperform" from "sector perform." The Globe's David Leeder writes in the Eye On Equities column that Mr. Gomes gave his share target a $2 shave to $4. Analysts on average target the shares at $6.65. Mr. Gomes says in a note: "Canopy Growth is making progress in cutting costs and improving margins to reach positive adjusted EBITDA,. We like the asset-light strategy that reduces the need for capital investments, but we think the current size of the business is too small relative to the debt. While debt is being reduced, the balance sheet is still overleveraged; to deal with the balance sheet, we think Canopy Growth may have to rely on further equity dilution, which may continue to put the stock under pressure. Moreover, the U.S. cannabis market is facing headwinds, which reduces the potential value of Canopy USA. The combination of those factors supports our move to an Underperform rating." The Globe reported on June 19 that Mr. Gomes had commenced coverage on Canopy Growth with a "sector perform" recommendation. The shares could then be had for $9.74.