Introduction

Canopy Growth Corporation (CGC), a constituent in the MunAiMarkets Canadian Cannabis LP Stocks Portfolio, extended its slide into the week ending June 20th (down 6% MTD), dropping another 16% and here’s why the pressure intensified:

1. Lingering fallout from June 18 earnings: Despite posting record fiscal 2025 revenue, Canopy’s Q1 2026 guidance warned of a dip in international sales, especially in Poland and the UK. That cautious tone triggered a sharp selloff on June 18, and the weakness bled into the rest of the week.
2. Earnings miss and valuation reset: The company reported a 24-cent loss per share, missing expectations of an 11-cent profit. That miss, paired with a stock that had rallied hard into earnings, led to a valuation reset as investors reassessed near-term profitability.
3. Analyst skepticism: Several analysts reiterated "Hold" or "Sell" ratings post-earnings, citing execution risk and limited near-term catalysts. That added to the bearish tone and kept buyers on the sidelines.

Despite the drop, Canopy’s CEO emphasized the company remains debt-free, cash-flow positive, and focused on high-margin medical markets.

About Canopy Growth Corporation

Canopy Growth engages in the production, distribution, and sale of cannabis, hemp, and cannabis-related products in Canada, Germany, and Australia. It offers dried flower and pre-rolled joints; extracts and concentrates, such as softgel capsules; cannabis edibles, including gummies; cannabis vapes; and oils, beverages, concentrates.

Stock Price Forecast

The 2 analysts with 12-month price forecasts for Canopy Growth stock have an average target of $2.00, which predicts a 61.29% increase from the current stock price of $1.24.

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