What happened
Canadian marijuana company Sundial Growers (SNDL 3.08%) hardly had a sunny day on the market Friday. The company's shares tumbled by over 7% on the day "thanks" to a fresh analyst price-target cut.
So what
The culprit was Canaccord Genuity analyst Shaan Mir, who chopped his Sundial price target by a deep 25%. In his estimation, the shares are now worth $0.60 apiece from the previous $0.80. At least Mir doesn't believe investors should bail on the stock; he's maintaining his hold recommendation on it for now.
Image source: Getty Images.
A downward adjustment at the end of the week hardly came as a surprise. Mir's action came less than two days after Sundial reported its latest quarterly results. While the company's fourth-quarter revenue saw a 63% rise on a year-over-year basis (to the equivalent of almost $18 million), it flipped to a rather deep net loss of nearly $43 million.
Now what
Although Sundial has had some success in its novel attempt at diversifying into a sort of cannabis venture fund firm, the company is still rooted in the production, cultivation, and retail segments of the Canadian market.
This is particularly challenging these days as selling prices continue to fall. Meanwhile, the company continues to expand these aspects of its business, most recently closing a deal for cannabis and liquor retailer Alcanna.
Investors, it seems, are losing patience with Sundial. Negative moves like Mir's price-target cuts won't help matters.
