Echelon Wealth Partners analyst Russell Stanley says Canopy Growth Corp’s (TSX:WEED) new online store will help improve customer access to its broad array of products.
On Wednesday, Canopy announced a new online store called Tweed Main Street, from which it will sell strains sourced from the three LPs it owns.
“We look at this as a transformative shift in the market,” said Canopy president Mark Zekulin. “From doctors to patients to virtually every stakeholder in the sector, we have heard continually that variety, reliability and consistency, matched with high-quality products and top customer care are essential. Bringing the sector’s three leading producers into a single on-line marketplace is the most important thing we can do to serve our clients.”
While Stanley says this development isn’t enough to move the needle on his price target, he does think it represents more convenience for Canopy customers, which is a positive.
“To date, Canopy’s customers had to register with, and purchase on-line from, single producers under the Canopy umbrella, be it Tweed, Mettrum or Bedrocan,” notes the analyst. “A single on-line ordering platform will make the combined product offerings available through a single point of contact, and make it more convenient for customers to select products that are best suited for them.”
This article is brought to you by ABCann Medicinals.
In a research update to clients Wednesday, Stanley maintained his “Speculative Buy” rating and one-year price target of $14.00 on Canopy Growth Corp., implying a return of 28 per cent at the time of publication.
Stanley thinks Canopy will post Adjusted EBITDA of negative $14.2-million on revenue of $40.4-million in fiscal 2017. He expects these numbers will improve to EBITDA of negative $6.0-million on a topline of $130.4-million the following year.