Canopy Growth price target lowered to C$4 from C$7 at BofA

BofA lowered the firm’s price target on Canopy Growth to C$4 from C$7 and keeps an Underperform rating on the shares after Canopy reported Q3 net sales that beat the firm’s and Visible Alpha estimates. While BofA sees an improved sales outlook and rightsizing aiding the stock, the company’s cash burn and lack of U.S. federal regulatory progress likely holds back additional investor interest, says the analyst, who cut the multiple the firm is applying to estimates given higher share count, updated net debt and revenue forecasts.