12:56 PM EDT, 05/31/2024 (MT Newswires) -- Canopy Growth Corporation ( CGC ) reported a fourth quarter revenue beat but EBITDA was well below Piper Sandler estimates.

Management reaffirmed its expectations to achieve positive adjusted EBITDA in H2 2025. Analyst Michael Lavery is modeling adjusted EBITDA of $0.8 million in Q3 2025E and $1.4 million in Q4 2025E. "It looks as though the worst is likely behind it, and its cash burn is slowing," Lavery notes

However, Piper Sandler does not see meaningful near-term catalysts, even with cannabis getting rescheduled from Schedule I to Schedule III. Canopy Growth's ( CGC ) F25E sales estimate is therefore being lowered from ~$305 million to ~$300 million and F26E sales from ~$345 million to ~$320 million.

Reiterate US$3 target, with an Underweight rating.

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