Canopy Growth Corporation (CGC) Sees Target Trimmed to C$1.80 on Sector Headwinds

We recently published an article titled 10 Best Low Volatility Canadian Stocks to Buy.

On February 7, Alliance Global analyst Aaron Grey lowered the firm’s price target on Canopy Growth Corporation (NASDAQ:CGC) to C$1.80 from C$2.50 while maintaining a Neutral rating following the fiscal Q3 report. The adjustment reflects a reduced valuation multiple amid uncertainty surrounding veteran reimbursement changes and potential pressure on gross margins.

In early January, Canopy Growth Corporation (NASDAQ:CGC) announced a recapitalization plan aimed at strengthening its balance sheet and extending debt maturities to at least January 2031. The company secured a new US$150 million term loan due 2031 to refinance debt maturing in 2027, reduce interest costs, and enhance working capital flexibility. It also reached an agreement to exchange a portion of its 2029 convertible debentures for new 2031 debentures, cash, equity, and warrants, effectively pushing out debt obligations and improving capital structure flexibility. The transactions are designed to provide multi-year liquidity visibility while supporting strategic priorities, including expansion in medical cannabis and integration of MTL Cannabis.

Canopy Growth Corporation (NASDAQ:CGC), founded in 2013 and headquartered in Smiths Falls, Ontario, produces and distributes recreational and medical cannabis products across multiple markets.

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