Stifel analyst W. Andrew Carter downgraded Canopy Growth to Sell from Buy with a price target of C$18, down from C$23. Despite the stock’s 21% decline following the Q4 earnings release, the valuation has yet to fully reflect Canopy’s challenges ahead, Carter tells investors in a research note. The company withdrew near-term financial targets while positioning fiscal 2021 as a “transition year,” which reflects not only the uncertainty of COVID-19 but also “necessary re-wiring for the organization,” says the analyst. Carter believes Canopy Growth’s “course correction” will be difficult, its expenses will remain elevated, and “catalysts for driving enthusiasm will be slow to develop necessitating a further re-rating for the shares.”