Shares of Canadian cannabis company Aphria Inc. APHA,
APHA,
rose 4.4% in pre-market trading on Tuesday after Stifel raised its share price target to C $ 15.50 ($ 12.18) from C $ 9.80, and said the results Recent studies highlight the company’s long-term prospects. But analysts led by W. Andrew Carter also reiterated a wait rating for stocks. Although Aphria’s earnings exceeded Stifel’s estimates, they included lower adult sales in Canada, which were moderated by stronger distribution sales and higher global medical sales, analysts wrote in a note to customers. Still, they said yes. However, we were surprised by the stock’s superior performance – it gained 25% after earnings, while the S&P 500 SPX,
fell 1% – following gains and increasing post-election strength. “We believe that the superior performance of Canadian LPs in the perspective of US federal reform has limited the merit of pushing ratings to unproven levels, but we believe that our fundamental perspective is robust along with the growth prospects of the pending combination with Tilray Inc. TLRY ,
are limiting factors for a more negative approach, “wrote the analysts.” But we believe that the robust assessment (11X EV / FY22E net cannabis recipe) serves as a deterrent to material superior performance with stocks likely to remain volatile. Friday, to consider his merger with Tilray, although he was not impressed by the company’s quarterly earnings. Aphria’s shares have gained 136% in the last 12 months, while Cannabis ETF THCX,
won 29%.
