Canopy Growth shares were under pressure for a second day as analysts questioned whether the Canadian cannabis grower could reduce it cash burn and turnaround operations. Benchmark slashed its price target on the firm to zero.

The stock has dropped 78% this year amid a broader selloff in the increasingly competitive marijuana market and little progress on federal legislation in the US, closing unchanged at C$0.68 on June 26. Its market capitalization has slumped from C$25 billion ($19 billion) in 2021 to less than C$400 million, leading to its expulsion from the S&P/TSX Composite Index earlier June.

In a note June 26 cutting his price target to zero, Benchmark analyst Mike Hickey said Canopy Growth’s management was unlikely to be able to turnaround performance. The firm, which acknowledged a going concern risk in its most recent annual report, “may not be able to continue operations and meet its financial obligations,” he wrote.

The company’s aggressive expansion into the US “could be a signal of desperation, given that the US market remains federally illegal,” he said.

The company didn’t immediately respond to a request for comment June 26 afternoon.

Even if the US were to legalize marijuana, it would be “no saviour” for Canopy, which is burning cash despite multiple cost cutting programs,” CIBC Capital Markets analyst John Zamparo wrote in a separate note on June 25.

Zamparo trimmed his price target on the stock to C$0.45 from C$0.50, writing that its “debt worries are no paranoia.”