Sundial Growers Inc. (SNDL) shares surged 12.1% on June 23. Over the past month, the stock has surged 38.9%, which is huge enough to draw the attention of investors.
This Canada-based company operates as a pharmaceutical company. It produces and grows cannabis strains. It has gained 112.8% over the past six months and 81.8% on a year-to-date basis.
Though there are no concrete reasons for the surge in the stock price, there are few interesting facts which might have sent SNDL prices soaring.
For one, the positive mention of the Sundial Growers on Reddit and other social media platforms is expected to have sparked enthusiasm among the traders, leading to a surge in the share price. (See Sundial Growers stock chart on TipRanks)
Cannabis Market to Grow
If we go by numbers, per a study from MarketsandMarkets, the cannabis market is projected to reach $90.4 billion in value by 2026. This represents a CAGR of 28% from 2020 through 2026.
This market is witnessing significant growth due to the increasing legalization of cannabis across various regions. Not only that, but the growing application of cannabis in the medical field and awareness among consumers regarding its health benefits are driving growth.
Given the strong market projections, Sundial Growers is well poised to capitalize on it and come out as a winner.
The stock has picked up a rating from one analyst in the past three months. Canaccord Genuity analyst Shaan Mir upgraded the rating to Hold from Sell and maintained a price target of $0.7 (30% downside potential).
Sundial Growers scores a 5 of 10 from TipRanks’ Smart Score rating system, indicating that the stock is likely to perform in line with market averages.