2023-06-13 22:09:04
Canopy Growth’s financial results review also extends to its 2022 fiscal year. (Photo: 123RF)
What to do with Canopy Growth Amazon and TFI International stocks? Here are some recommendations from analysts likely to move prices soon. Note: the author may have a totally different opinion from the one expressed.
Canopy Growth (WEED, $0.91): financial results revision extends to fiscal 2022
The chance of a catalyst reversing Canopy Growth’s fortunes is remote, and CIBC Capital Markets analyst John Zamparo expects the company to report a large net loss for its 2023 fiscal year, ending on March 31, when she finally publishes them.
The company disclosed in May that it would have to revise the financial results for the first three quarters of its fiscal year 2023 (period from April 1 to December 31, 2022) following discovering material anomalies related to the activities of its BioSteel Sports Nutrition brand. . On June 12, it announced that this audit also extended to its 2022 financial year.
“Canopy faces many challenges as sales in Canada continue to decline, which will negate its cost reduction efforts. BioSteel’s revenues remain a question mark until the financial results review is complete. Not to mention that the company’s net debt, currently around $400 million, might climb to $700 million by the end of the year,” the analyst said.
John Zamparo adds that Canopy was a “standard bearer” for the industry, as US regulators discuss reform over the legalization of cannabis use. “Not only do investors seem pessimistic regarding the outcome of these discussions, but Canopy’s stock also seems less responsive even on good days,” he says.
The analyst adds that according to data from Hifyre, Canopy’s retail sales fell 13% year on year in May, with market share of 3.3%, down 2.1 percentage points. No date has been given as to when the company will be able to release its revised financial results.
According to him, it is very difficult to see how a reversal might rescue the company. Its recommendation on the title of Canopy Growth is at “underperformance” and its target price over one year goes from $1.75 to $0.50, which is lower than the current value of the title.
Amazon (AMZN, US$123.43): Lots of growth potential
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