Alliance Global Partners raised the firm’s price target on Canopy growth to C$1.30 from C$0.60 and maintained a Neutral rating after the company announced plans for protection under CCAA in an effort to reduce the cash drag from the BioSteel business. The company’s target of profitability by FY24 is now on a consolidated basis, vs. excluding BioSteel, and the firm sees potential for the company to inflect to positive EBITDA by FY25, the analyst tells investors in a research note, adding that the exit of Biosteel returns Canopy Growth to a more simplified, more cannabis-focused story, as the company’s actions remove a notable cash drag on the business.
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