Eight Capital analyst Ty Collin on Wednesday cut his price target for Canadian cannabis company Canopy Growth Corp. CGCCA:WEED to $0 from C$1.75 ($1.32) a share and reiterated a sell rating on the stock. Canopy Growth stock fell about 22% to 46 cents a share on Wednesday. “We believe it is no longer appropriate to value Canopy as a going concern,” Collin said in a research note. The company, which issued a going concern warning last month, now has less than 12 months of cash runway, a lack of financing alternatives, and large ongoing losses with no clear path to profitability, Collin said. “With the recent bankruptcy of leading cannabis retailer Fire & Flower and the distressed sale of Hexo to Tilray TLRYCA:TLRY, we think investors should be awake to the fact that no Canadian cannabis company is too big to fail in this environment.”
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