One day after CIBC slashed its price target on Tilray, Inc. (TSX: TLRY) (Nasdaq: TLRY), the broker-dealer lowered its price target on Canopy Growth Corporation (TSX: WEED) (Nasdaq: CGC) to C$30 from C$36.

The lower price target was issued ahead of Canopy Growth’s plan to report first quarter financial results before the market opens on August 6^th and we will monitor the trend ahead of this release.

Based on CIBC’s price target on Canopy Growth, the broker-dealer believes that there is more than 15% upside to current levels. We expect the global cannabis company to report strong growth in the first quarter and will be closely analyzing the data from its earnings report.

So far this year, Canopy Growth has been under considerable pressure and the stock has fallen more than 60% from its highs in February. Since the entire Canadian cannabis sector has been under similar pressure, we are not as concerned with Canopy Growth’s trend and will continue to monitor price movements from here.

Cronos Group Inc. (TSX: CRON) (Nasdaq: CRON) will also be reporting quarterly financial results on August 6^th. On a comparative basis, we are less confident with Cronos than we are with Canopy Growth and will monitor how the market responds to the numbers that are reported by the Canadian cannabis operators.

Although we consider Canopy Growth to be a more advanced opportunity than Cronos, we expect both operators to report strong growth on a quarter-over-quarter basis. One of the primary reasons for our bullish outlook on these Canadian cannabis companies is related to how COVID lockdowns have eased in Canada and in strategi international markets.