Singer Fitzgerald raised its 12-month stock price target for Canadian cannabis company Aphria Inc. APHA,
HERE,
at $ 26 from $ 11.75 on Friday, to consider its merger with Tilray Inc. TLRY,
although he wasn’t impressed by the company’s quarterly earnings posted Thursday. “We were disappointed in the November quarter reported by APHA.TO on 1/14 (yes, shares were up 20%, but we think there were other reasons at stake), but it would be like saying that President-elect Biden, Vice President “Select Harris, and the newly elected senators Warnock and Ossoff all had a bad day,” analyst Pablo Zuanic wrote in a note to clients. “They just won their respective elections. We believe the analogy applies here: it’s what APHA + TLRY can do in a rapidly deregulating world of cannabis.” Zuanic expects licensed Canadian players to have a significant advantage because recreational markets open up to overseas markets, such as Israel, Mexico, Germany and the Netherlands, as medical markets develop and as they enter the United States. . CGC growth,
WEED,
and Cronos CRON,
CRON,
are valued at 18-21x CY21 EV / sales (based on FactSet consensus estimates) and APHA + TLRY is at 13x, despite being No. 1 in the Canadian market (20% share, 7 points above # 2) and having the option of a future CPG partner (we believe it is the most attractive asset), we would say there is value, “he wrote. Aphria’s shares rose 7.5% ahead of the market and gained a 131% in the last 12 months, while the Cannabis THCX ETF,
has gained 31% and the S&P 500 SPX,
has gained 15%.