Shares of Canadian cannabis company Aphria Inc. APHA,
HERE,
rose 4.4% in premarket trading on Tuesday, after Stifel raised its stock price target to C $ 15.50 ($ 12.18) from C $ 9.80, and said Recent results underscore the company’s long-term prospects. But analysts led by W. Andrew Carter also reiterated the stock’s hold rating. Although Aphria’s earnings exceeded Stifel’s estimates, they included lower sales of Canadian adult use, which were offset by stronger distribution sales and higher global medical sales, analysts wrote in a note to customers. Still, they said they were However, we were surprised to outperform the stock: it gained 25% after gains, while the S&P 500 SPX
has fallen by 1%, after earnings and post-election strength is rising. “We believe that outperforming Canadian LPs on the prospect of U.S. federal reform has limited the merit of pushing valuations to unjustified levels, but we believe our strong fundamental outlook along with growth prospects pending combination with Tilray Inc.
they are limiting factors for a more negative approach, “analysts wrote.” But we believe that the solid valuation (11X EV / FY22E net cannabis revenue) serves as an impediment to material overcoming with stocks likely to remain volatile. “On Friday, to consider his merger with Tilray, though he wasn’t impressed with the company’s quarterly revenue.
has gained 29%.