Canopy Growth Corp
WEED: XTSE (CAN)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
CAD 42.00 | Wlxnk | Jjm |
Canopy Earnings: Profit Losses Narrow, but Cash Burn and Dilution to Existing Equity Will Continue
After its release of its first-quarter fiscal 2024 results, we don’t expect to make significant changes to our fair value estimates for no-moat Canopy of $0.80 and CAD 0.90 per share. Even though shares trade well below these values, we reiterate our Extreme Uncertainty Rating. In particular, we think existing equityholders are likely to see significant dilution as cash burn continues and debt matures.