Canopy Growth Corp. CGC, -0.70% WEED, -0.36% seems to have lost its market lead in adult-use cannabis in Canada, GMP Securities said Friday. Analyst Ryan Macdonell slashed his stock price target to C$45 from C$65, after the company reported earnings for its fiscal first quarter that were mostly below expectations. But the company's setting aside of a C$6.4 million provision against oil and gelcaps being returned due to oversupply may be a company-specific problem, said Macdonell. The analyst calculated that 23% of the company's third-quarter and 50% of its fourth-quarter recreational market volumes were extract products, while extracts accounted for an average of 7% of the sell-through volume in the recreational market since inception. "We are decreasing our price target as the lacklustre performance in recreational market sales could indicate that Canopy has lost the leading position," he wrote in a note. "We remain positive on WEED over the long-term as we expect the company is well prepared for cannabis 2.0.," he said, referring to the launch of new formats including edibles later this year. Canopy shares were up 2% premarket, but have fallen 17% this week and 39% in three months. The ETFMG Alternative Harvest ETF MJ, +0.48% has fallen 24% in the last three months, while the S&P 500 SPX, +1.59% has lost 1%.