Raymond James downgraded Cardiol Therapeutics (TSX:CRDL) to “market perform 3” from “outperform 2” and reduced its price target to $3.50 (Canadian) from $4.50, citing continued delays in the commercial launch of CardiolRx. The stock closed at $2.42 on July 31.
Last March, Cardiol signed a supplier agreement to offer its pharmaceutically produced brand of cannabidiol products, CardiolRx, through Shoppers Drug Mart in Canada.
Analyst Rahul Sarugaser writes that in June, he reduced the price target for Cardiol to $4.50 because of the slower-than-expected commercialization of CardiolRx via Shoppers. “Eight weeks later, we have yet to see evidence of CardiolRx’s commercial launch,” he added.
In June, Mr. Sarugaser said the commercialization delays were probably caused by the effects of the COVID-19 pandemic, “but [we note] that launch onto the Shoppers platform could happen any day now.”