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Morning Cannabis Roundup: CGC, ACB, TLRY, and Others

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Canopy Growth weighs on Constellation Brands

Early on January 9, Constellation Brands reported its third-quarter earnings. The company lowered its EPS forecast to $9.2–$9.3 from $9.6–$9.75. The forecast was lower due to interest expense costs of $55 million related to Constellation Brands’ investments in Canopy Growth (WEED) (CGC)—a Canadian cannabis company (MJ). However, Constellation Brands is still reviewing the impact of its investment in Canopy Growth.

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Aurora Cannabis (ACB) got a target price cut from Eight Capital. The target price was cut from 17 Canadian dollars to 15 Canadian dollars. Wall Street analysts expect Tilray’s (TLRY) fourth-quarter losses to expand to a consensus of $0.19 per share. Tilray had a consensus recommendation of a “hold,” while Aurora Cannabis had a consensus recommendation of a “buy” on the stock.

In the pre-market session, Constellation Brands was trading nearly 11.7% lower, while Canopy Growth rose 3.1%. Aurora Cannabis rose 1.8%, while Tilray fell by 67 basis points. Aphria (APHA) rose nearly 2%, while Cronos Group (CRON) rose by 32 basis points in the pre-market session.

To learn more, read US Cannabis Sector Bets Are Getting Bolder Every Day.

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