According to an Oppenheimer analyst, Canopy Growth is not a stock to buy.

While the Canadian marijuana producer has a lot of money, at $28 a share it is still expensive says analyst Rupesh Parikh.

According to Parikh, the company is set to lose over $800 million over the two year period that ends in March 2020.

Parikh has initiated coverage on the stock and has rated the stock a market performer.

“[W]e are closely watching the company’s ability to navigate a difficult backdrop lately and improve profitability,” Parikh wrote in a note. The analyst has no set price target.

This year the stock has lost half of its value after reporting disappointing quarterly results and even firing its CEO Bruce Linton.

Parikh believes that even after the selloff, Canopy stock trades at a valuation premium to its peers. The analyst believes that the industry’s sales leader Aurora Cannabis (ACB) trades for less than five-times its 2021 revenue.

“We would await a full reset before speculating on [Canopy’s] prospects,” he also said.

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