The firm downgraded the stock to neutral from buy and also slashed its price target to $27 from $46. The price target is only a slight upside from the stock's closing price Thursday of $27.74.
Bank of America analyst Christopher Carey said he sees a swoon in Canopy's stock that will match a second half pause in Canada's cannabis industry growth.
The price target represents a downside from the stock's closing price Thursday of $17.05.
The firm is bearish on the company's prospects due to increased competition that will create structural headwinds for the Redwood CA-based company. Microsoft is seen as being the biggest impediment to the company's growth.
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