Hedge funds building short thesis on Canopy Growth, says Jefferies

In a research note summarizing early feedback from investors on his cannabis initiations last week, Jefferies analyst Owen Bennett says hedge funds appear to be building a short thesis on Canopy Growth (CGC). The thesis focuses on harvesting concerns, which in Q2 came in at 15,217kg and then 7,556kg in Q3, Bennett tells investors in a research note. He points out that Canopy has attributed the reduction to rotation timing between harvests. The “short view is it could be due to crop failure due to scaling up too quickly,” the analyst contends. With this in mind, he believes Canopy Growth’s Q4 results will be very closely watched. Bennett has a Hold rating on Canopy Growth.