The worlds largest cannabis company Canopy Growth (CGC) saw shares fall another 5% Monday after cratering 20% following Friday’s fourth-quarter results, which disappointed against even its own revenue guidance.
Analysts at Stifel Nicolaus cut Canopy to a Sell rating while Morningstar maintained its “No moat” rating on the Ontario-based cannabis giant, indicating an unlikely differentiation from an already struggling cannabis sector, while conceding there remains long-term upside potential if the company can convert customers from the illegal black market.
Canopy Growth CEO David Klein focused on that opportunity in a recent Yahoo Finance Presents interview, noting that company’s recently launched cannabis beverages were off to a hot start. The company, which is backed by alcohol giant Constellation Brands, (STZ) is betting its new cannabis-infused beverages can grow to dwarf even the exploding hard seltzer industry by offering an even healthier alternative to beer.
“The drinks that we have in the