Aphria gets 58% price increase in target from top analyst



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Aphria (NASDAQ: APHA) has become a favorite marijuana stock lately, due to better than expected quarterly results and the looming merger with peers Tilray (NASDAQ: TLRY). On Tuesday, a leading analyst added to this positive sentiment with a significant hike in the price target.

This analyst, W. Andrew Carter of Stifel, raised its price to 15.50 Canadian dollars ($ 12.14), compared to 9.80 CAD ($ 7.67). In doing so, however, it maintained its neutral rating on the title.

The prognosticator believes these second quarter results “underscore Aphria’s strong position”, despite declining sales for the key recreational marijuana segment in Canada. Stifel maintains its hold rating on the stock because subsequent price appreciation (also based on the prospect of the US decriminalizing marijuana at the federal level) limits the stock’s potential for outperformance.

Cannabis flower and vape pen.

Image source: Getty Images.

Vice President-elect Kamala Harris has pledged her administration to take this step, although she will likely have higher priorities such as the national response to the coronavirus pandemic and the reversal of some policies adopted by the administration. Trump outgoing.

Regardless of when or when the United States switches to marijuana, Aphria is emerging as a major marijuana company in North America. In addition to its tie-up with Tilray (which is in effect a takeover, although the combined companies will adopt the Tilray name), Aphria is strengthening itself with other assets. In November, he announced that he was buying SweetWater Brewing, a maker of cannabis-flavored beer, for around $ 300 million.

Investors were clearly encouraged by the increase in Carter’s price target. They pushed Aphria up nearly 10% on Tuesday, despite the analyst’s insistence on maintaining the maintain recommendation. On the other hand, the S&P 500 increased by less than 1% over the day.



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