Canopy Growth Corp

WEED: XTSE (CAN)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	CAD 58.40	Tmyv	Hhzrz

Canopy Earnings: Profit Losses Narrow, but Cash Burn and Dilution to Existing Equity Will Continue

Kristoffer Inton

Aug 10, 2023

After its release of its first-quarter fiscal 2024 results, we don’t expect to make significant changes to our fair value estimates for no-moat Canopy of $0.80 and CAD 0.90 per share. Even though shares trade well below these values, we reiterate our Extreme Uncertainty Rating. In particular, we think existing equityholders are likely to see significant dilution as cash burn continues and debt matures.

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