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Oct. 11, 2019, 8:38 a.m. EDT

Canopy Growth downgraded by Jefferies as analysts slash price targets on sector by average 50%

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By Ciara Linnane

Jefferies downgraded Canopy Growth Corp. /zigman2/quotes/200603886/composite CGC -3.90% /zigman2/quotes/202205609/delayed CA:WEED -3.82% on Friday and slashed its stock price targets for cannabis companies by an average of 50%, a day after a revenue warning from Hexo Corp. /zigman2/quotes/206508254/composite HEXO -6.13% /zigman2/quotes/200008967/delayed CA:HEXO -6.07% prompted a sharp selloff in the sector as investors moved to price in heightened risk. "With a number of negative headlines impacting the sector the last 6 months, and still with little sign of profitability, the sector has seen greater risk/volatility priced in," analysts Owen Bennett and Ryan Tomkins wrote in a note to clients. The analysts downgraded Canopy, the market leader, to hold from buy and cut their price target to C$25 ($18.8) from C$77. The analysts cut Hexo's stock price target to C$3.80 from C$7.70, cut Cronos /zigman2/quotes/206842762/composite CRON -7.28% /zigman2/quotes/202715342/delayed CA:CRON -7.60% to C$10 from C$15, lowered Aurora Cannabis /zigman2/quotes/210559470/composite ACB -0.56% /zigman2/quotes/203734337/delayed CA:ACB -0.42% price target to C$7 from C$14, cut Organigram /zigman2/quotes/209289540/lastsale OGI -8.06% to C8.20 from C10.50, cut Green Organic Dutchman /zigman2/quotes/204266798/delayed TGODF -4.64% /zigman2/quotes/206870535/delayed CA:TGOD -5.15% to C$2.40 from C$6.50 and lowered Tilray's price target to $25 from $57. At the same time, they upgraded Hexo to hold from underperform and upgraded Organigram and Flowr Corp. /zigman2/quotes/206895064/delayed CA:FLWR -2.73% to buy from hold. "The next 12 months price performance should see strong divergence between those who can execute/move to profit and the rest," the analysts wrote. Canopy shares fell 1.8% premarket. The stock has fallen 24% in 2019, while the ETFMG Alternative Harvest ETF has fallen 25% and the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.07% has gained 17%.

Read the full story:
Cannabis stocks mostly higher after major rout but concerns about lack of profit persist

/zigman2/quotes/200603886/composite
US : U.S.: NYSE
$ 18.50
-0.75 -3.90%
Volume: 7.41M
Nov. 13, 2019 6:30p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$7.06 billion
Rev. per Employee
$115,039
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/zigman2/quotes/202205609/delayed
CA : Canada: Toronto
$ 24.45
-0.97 -3.82%
Volume: 1.68M
Nov. 13, 2019 4:23p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$9.34 billion
Rev. per Employee
$150,142
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/zigman2/quotes/206508254/composite
US : U.S.: NYSE
$ 1.99
-0.13 -6.13%
Volume: 5.35M
Nov. 13, 2019 6:30p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$544.86 million
Rev. per Employee
N/A
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/zigman2/quotes/200008967/delayed
CA : Canada: Toronto
$ 2.63
-0.17 -6.07%
Volume: 1.40M
Nov. 13, 2019 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$722.20 million
Rev. per Employee
N/A
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/zigman2/quotes/206842762/composite
US : U.S.: Nasdaq
$ 7.26
-0.57 -7.28%
Volume: 11.45M
Nov. 13, 2019 4:00p
P/E Ratio
16.38
Dividend Yield
N/A
Market Cap
$2.76 billion
Rev. per Employee
$55,248
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/zigman2/quotes/202715342/delayed
CA : Canada: Toronto
$ 9.61
-0.79 -7.60%
Volume: 1.02M
Nov. 13, 2019 4:00p
P/E Ratio
16.24
Dividend Yield
N/A
Market Cap
$3.65 billion
Rev. per Employee
$70,780
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/zigman2/quotes/210559470/composite
US : U.S.: NYSE
$ 3.55
-0.02 -0.56%
Volume: 14.69M
Nov. 13, 2019 6:30p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$3.72 billion
Rev. per Employee
$94,401
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/zigman2/quotes/203734337/delayed
CA : Canada: Toronto
$ 4.69
-0.02 -0.42%
Volume: 3.48M
Nov. 13, 2019 4:46p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$4.92 billion
Rev. per Employee
$123,163
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/zigman2/quotes/209289540/lastsale
US : U.S.: Nasdaq
$ 2.51
-0.22 -8.06%
Volume: 4.54M
Nov. 13, 2019 4:00p
P/E Ratio
14.74
Dividend Yield
N/A
Market Cap
$529.46 million
Rev. per Employee
$49,972
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/zigman2/quotes/204266798/delayed
US : U.S.: OTC
$ 0.70
-0.03 -4.64%
Volume: 883,272
Nov. 13, 2019 3:59p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$215.18 million
Rev. per Employee
$8,428
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/zigman2/quotes/206870535/delayed
CA : Canada: Toronto
$ 0.92
-0.05 -5.15%
Volume: 1.20M
Nov. 13, 2019 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$284.15 million
Rev. per Employee
$10,924
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/zigman2/quotes/206895064/delayed
CA : Canada: TSX Venture
$ 2.85
-0.08 -2.73%
Volume: 71,640
Nov. 13, 2019 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$193.41 million
Rev. per Employee
N/A
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
3,094.04
+2.20 +0.07%
Volume: 1.72B
Nov. 13, 2019 4:56p
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