June 24, 2019 / 1:17 PM / a year ago

BUZZ-Canopy Growth: Cormark cuts PT, lowers fiscal 2020 sales forecast

** Cormark Securities cuts price target on Canadian cannabis producer Canopy Growth Corp by C$5 to C$65; maintains “buy” rating

** Canopy posted Q4 adj. EBITDA loss of C$97.7 mln vs analysts’ avg estimates of a C$63.6 mln loss

** Brokerage says co’s operating losses to deepen further in coming quarters

** Brokerage cuts fiscal 2020 sales forecast to C$601 million from C$649 million and now expects adj. EBITDA loss of C$369 mln compared to previous forecast of about C$164 mln

** However, investors will continue to look beyond near-term profitability considering Canopy has the largest market share, best capitalized balance sheet and the support of Constellation Brands - Cormark

** 12 of 20 brokerages rate the stock “buy” or higher, 7 “hold” and 1 “sell”; Median PT is C$72.59 - an upside of ~36% to stock’s closing price on Friday - Refinitiv data

** Up to Friday’s close, stock up 45.5% YTD (Reporting by Debroop Roy in Bengaluru)

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