Canopy Growth Corp

WEED: XTSE (CAN)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	CAD 47.00	Xgzb	Ktth

Canopy Earnings: Shares Look Fairly Valued as Cannabis Positions Are Middling

Kristoffer Inton

Aug 12, 2024

After reviewing Canopy Growth's fiscal first-quarter earnings, we will likely reduce our fair value estimates of CAD 10.50/$7.70 by mid-single-digit percentages. Our cuts stem from weaker adult use in its Canadian market than we previously expected, partially offset by greater strength in the medical market. We don’t see enough margin of safety despite shares trading below our fair value estimates and recommend investors wait for a better entry point. We see better opportunity in no-moats Curaleaf and Green Thumb, given their more favorable exposure to the United States cannabis market.

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