WEED: Rising Discount Rate Will Pressure Share Price In The Months Ahead

Analysts have adjusted their price target for Canopy Growth downward from $2.64 to $1.30. They cited an increased discount rate as well as ongoing evaluations of profit margin and future earnings potential.

What's in the News

• Shareholders approved an amendment that allows for potential consolidation of Canopy Growth's common and exchangeable shares. This may be implemented within 12 months if considered in the company's best interest. (Annual General Meeting, October 2025)
• The DOJA facility in Kelowna, British Columbia, is now exclusively a medical cultivation site focused on small-batch, craft cannabis for Spectrum Therapeutics' patients, particularly Canadian veterans. (Company announcement, October 2025)
• Tom Stewart has been appointed Chief Financial Officer, effective September 17, 2025, following his term as Interim CFO and several years in the company's finance leadership. (Executive announcement, September 2025)
• Canopy Growth launched a new $200 million at-the-market equity program to fund acquisitions, business investments, and general corporate purposes. (Company announcement, August 2025)
• The company completed a $55.8 million follow-on equity offering, issuing over 21 million shares at a price of $1.33 each. (Company announcement, August 2025)

Valuation Changes

• The Fair Value Estimate has decreased significantly from CA$2.64 to CA$1.30.
• The Discount Rate has increased slightly from 5.97% to 6.12%.
• The Revenue Growth projection has risen marginally from 7.73% to 7.83%.
• The Net Profit Margin forecast has improved from 1.2% to 2.92%.
• The estimated Future P/E Ratio has declined substantially from 289.86x to 63.75x.