APHA - Aphria Inc.

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Previous Close3.1900
Bid3.1900 x 3200
Ask3.2000 x 3000
Day's Range3.1050 - 3.2900
52 Week Range1.9500 - 10.1150
Avg. Volume6,017,411
Market Cap852.624M
Beta (5Y Monthly)2.23
PE Ratio (TTM)10.70
EPS (TTM)0.2990
Earnings DateN/A
Forward Dividend & YieldN/A (N/A)
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Fair Value is the appropriate price for the shares of a company, based on its earnings and growth rate also interpreted as when P/E Ratio = Growth Rate. Estimated return represents the projected annual return you might expect after purchasing shares in the company and holding them over the default time horizon of 5 years, based on the EPS growth rate that we have projected.
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    • How this company is helping cash-strapped cannabis companies
      Yahoo Finance Video

      How this company is helping cash-strapped cannabis companies

      NewLake Capital Partners is an independent investment vehicle focused on acquiring industrial and retail properties in the cannabis industry. NewLake Capital Partners CEO Anthony Congilio joins On the Move to discuss the current state of the industry.

    • A Complete List Of NYSE And NASDAQ-Listed Cannabis Companies

      A Complete List Of NYSE And NASDAQ-Listed Cannabis Companies

      As the cannabis industry keeps pushing forward, more companies are moving to list their stock on a major U.S. exchange like the NYSE or NASDAQ.Canadian medical marijuana producer Aphria Inc (NYSE: APHA) debuted on the NYSE on Nov. 2. Prior to that, Aphria's stock had been listed on the over-the-counter market in the U.S. and on the Toronto Stock Exchange. Listing on the NYSE is a major step for Aphria, opening the company to a larger pool of investors.Aphria joins a relatively small club of public cannabis companies. Given the federal uncertainty that still surrounds cannabis in America and in most of the world, few cannabis companies choose the path of a public listing in order to raise funds and even fewer among them are pure-play marijuana stocks.Spanish version, "Una Lista Completa de Empresas de Cannabis Con Acciones en las Bolsas NYSE y NASDAQ," on El Planteo.Listing Vs. Other Funding Sources Cannabis companies are typically able to raise money from venture capital firms, or they can list their stock.Listing a stock allows enables fundraising from a larger pool of investors. At the same time, a publicly traded stock can be volatile, and even more so in an emerging sector like cannabis.Even though listing on a major exchange such as the NYSE and NASDAQ requires a company to comply with strict transparency and accountability rules, it also sends investors a sign that the company is serious about its business.Benzinga has compiled a list of NYSE- and NASDAQ-listed cannabis companies, as well as a short description of the company's involvement in the sector. In the first part of the list, we focused on pure-play stocks: companies for which cannabis is their core business.Akerna Corp (NASDAQ: KERN) Market Cap: $91.26M Akerna was launched on June 17, 2019, following the merger of cannabis-focused blank check company MTech Acquisition Corp and MJ Freeway, a provider of a seed-to-sale regulatory compliance technology and Enterprise Resource Planning platform.Akerna is the first cannabis compliance technology company to be traded on NASDAQ and is the first NASDAQ-listed cannabis company led by a woman. The company allows cannabis businesses to connect data points in their supply chain making it more transparent and accountable.Arena Pharmaceuticals (NASDAQ: ARNA) Market Cap: $2.71BArena Pharmaceuticals is a biotech company located in San Diego, which has one segment of its drug pipeline dedicated to cannabinoid-type therapeutics. Other parts of its drug pipeline are focused on non- cannabinoid drugs. The core of its cannabis biotech operations is the research and development of its investigational drug candidate called Olorinab (APD371). This is an oral full agonist of the cannabinoid receptor 2 that is being researched for the treatment of various symptoms, mainly concentrated on visceral pain connected with gastrointestinal illnesses.Aurora Cannabis Inc (NYSE: ACB) Market Cap: $1.74BCanadian marijuana producer Aurora Cannabis is considered one of the best stocks for full exposure to the cannabis industry. Aurora is one of the largest cannabis companies in the world. It operates eight licensed production facilities, with five sales licenses and operations in 18 countries. The company has a funded production capacity of over 500,000 kilograms. Aurora recently acquired MedReleaf in a $2.5-billion merger, the industry's largest.Canopy Growth Corp (NYSE: CGC) Market Cap: $7.84BCanopy Growth is the largest marijuana company in the world by market capitalization. It's also one of the largest in terms of funded production capacity, with a figure of over 500,000 kg. The company is moving fast in expanding its licensed grow space. It started the year with around 800,000 square feet, but recently it has said it reached a licensed platform of 4.3 million feet. Overall, Canopy has a production platform of 5.6 million feet, of which now 75 percent is licensed. CannTrust Holdings Inc. (NYSE: CTST) DelistedOn Feb. 25, CannTrust Holdings joined its peers on the New York Stock Exchange. CannTrust provides medical and recreational cannabis and cannabis products, operating a 450,000 square-foot facility in Pelham Ontario, which it plans to expand by another 390,000 square feet. CannTrust has a 60,000 square-foot packaging facility in Vaughan, Ontario. Outside of Canada, CannTrust works with Cannatrek Ltd in Australia and has ajoint venturewith STENOCARE in Denmark.cbdMD Inc (NYSE: YCBD) Market cap: $54.95McbdMD offers a range of CBD products, such as tinctures, oil, gummies, topicals and pet products. Recently, the company has partnered with a number of athletes, such as retired UFC champion Quinton "Rampage" Jackson and professional golfer Bubba Watson.On May 1, cbdMD changed its name from Level Brands and the ticker from LEVB to YCBD following a vote from shareholders. It's the only CBD-focused U.S. company traded on a major exchange.Corbus Pharmaceuticals Holdings Inc. (NASDAQ: CRBP) Market Cap: $412.34M Corbus Pharmaceuticals is a Phase 3 clinical-stage pharmaceutical company concentrated on the development of new drugs to help with inflammatory and fibrotic illnesses by targeting the endocannabinoid system. Its principal drug candidate is called lenabasum, and it is an oral, cannabinoid receptor type 2 agonist formed to help with chronic inflammation and fibrotic processes. The drug is also being tested for its potential in treating cystic fibrosis, systemic lupus erythematosus, and some other illnesses. Furthermore, the company is working on creating a pipeline of drug candidates that address the endocannabinoid system.Cronos Group Inc (NASDAQ: CRON) Market Cap: $2.52BIn February, Cronos Group became the first pure-play cannabis stock to list on a major U.S. exchange. Based in Canada, Cronos is a vertically integrated cannabis company whose core business is medical marijuana, but it is also involved in the recreational space following the full legalization of weed in Canada earlier this month. Similar to its peers, Cronos has been ramping up its production capacity and expects to grow over 47,000 kilograms in early 2019. In addition, Cronos owns Peace Naturals and Original BC, which are licensed to grow and sell medical marijuana in Ontario and British Columbia, respectively.FSD Pharma Inc. (NASDAQ: HUGE) Market Cap: $46.82MFSD Pharma is a biotech pharmaceutical research and development company that works on a pipeline of FDA-approved synthetic compounds directed at affecting the endocannabinoid system to help with various disorders of the central nervous system and autoimmune illnesses of the GI tract, skin, and the musculoskeletal system. Its subsidiary, FV Pharma, is a licensed producer under Canada's Cannabis Act regulations with the license to grow cannabis in its facility in Cobourg, Ontario.Greenlane Holdings, Inc. (NASDAQ: GNLN) Market Cap: $100.59MGreenlane went public on April 18. It's a Florida-based company that distributes over 140 brands of vaporizers and smoking accessories across the world through dispensaries, smoke shops, as well as through its ecommerce platforms.The company doesn't provide any cannabis products, but it has a major exposure to the industry and is betting big on its growth. Greenlane's products are distributed across hundreds of licensed cannabis cultivators, processors and dispensaries.GW Pharmaceuticals PLC (NASDAQ: GWPH) Market Cap: $3.93BAmong pharmaceutical companies, UK-based GW Pharmaceutical is the closest to being a pure-play cannabis company.GW is focused on developing cannabis-based drugs. Its Sativex drug, for the treatment of multiple sclerosis, was the first-ever natural cannabis plant derivative to be approved by regulators in any country, receiving UK approval in 2010. Earlier this year, Epidiolex, for the treatment of epilepsy, became the first cannabis-derived drug to bag FDA approval. HEXO Corp (NYSE: HEXO) Market Cap: $429.36MHexo is a Gatineau, Quebec-based adult-use cannabis company that focuses on innovative, smoke-free and traditional cannabis products. The company was previously known as Hydropothecary Corp, but changed its name to HEXO in August 2018 following the launch of the HEXO brand for the adult-use market (medical products retained the Hydropothecary brand).In August 2018, HEXO and Molson Coors Brewing Co (NYSE: TAP)'s Canadian division agreed to form a joint venture (later revealed as Truss) to develop non-alcoholic, cannabis-infused beverages for the Canadian market. HEXO's stock debuted on the NYSE American on Jan. 23.Innovative Industrial Properties Inc (NYSE: IIPR) Market Cap: $1.69BInnovative Industrial Properties is the only publicly traded cannabis-focused Real Estate Investment Trust. The company manages a portfolio of real estate properties that it leases to medical cannabis companies in the U.S. Among its lessees are PharmaCann (New York and Massachusetts), The Pharm (Arizona), Holistic Industries (Maryland and Massachusetts), Green Peak (Michigan) and Vireo Health (Minnesota, New York, and Pennsylvania).Intec Pharma Ltd. (NASDAQ: NTEC) Market Cap: $10.28M Intec Pharma is a biopharmaceutical company that works on creating a variety of therapeutics relying on its proprietary According Pill technology. Among, the company's product pipeline candidates in clinical development are AP-cannabinoids. They are being examined for helping with various conditions such as cancer pain and opioid-sparing pain, by delivering one or both of the main cannabinoids naturally found in Cannabis sativa, CBD and THC.NEWAGE (NASDAQ: NBEV) Market Cap: $199.90M NewAge is a Colorado-based omnichannel company that tries to motivate consumers to "live healthy." It is the only one-stop-shop of healthy beverages, with famous brands such as Nestea, Evian, Bucha Live Kombucha, Illy Coffee, and Volvic. Recently the company has announced that its Noni+CBD product has obtained sales approval by the Japanese Ministry of Health and the Japanese Narcotics Control Division. The company also offers a portfolio of hemp products, such as oils, body creams, and roll-on gels, which has reached Australia and New Zealand.OrganiGram Holdings Inc (NASDAQ: OGI)Market Cap: $444.97MAfter announcing it had applied to list its stock on NASDAQ on April 26, it took slightly more than two weeks for the Canadian cannabis producer to get approved and another week for it to start trading on May 21.OrganiGram produces indoor-grown medical and adult-use cannabis in Canada and has distribution across all 10 provinces. The company's plants for recreational use have recently received the organic certification from the Pro-Cert Organic Systems Ltd. In anticipation of the legalization of edibles in Canada later this year, OrganiGram has invested $15 million into an automated production line for cannabis-infused chocolate that has a capacity of 4.0 million kilograms per year, which will be delivered this fall.Pyxus International Inc (NYSE: PYX) Market Cap: $41.21MUntil recently, Pyxus International was known as Alliance One International and was involved in tobacco growing and packaging. Earlier this year, the company rebranded into Pyxus as it embraced cannabis. In January, Pyxus's subsidiary Canadian Cultivated Products acquired 75 percent of Canada's Island Garden and 80 percent of Goldleaf Pharm. Later, Canadian Cultivated Products was rebranded into FIGR Cannabis.At the beginning of October, Goldleaf received a cultivation license from Health Canada. In addition, Canada's Island Garden has received a license to sell marijuana and signed an agreement with the province of Prince Edward Island for 1,000 kilograms of cannabis products. Moreover, Pyxus International's Korent subsidiary is involved in production of industrial hemp and hemp-derived CBD oil and liquid for e-cigarettes.Sundial Growers Inc. (NASDAQ: SNDL) Market Cap: $143.49MAlberta-based cannabis company, Sundial Growers is known for cultivating a specific range of cannabis strains. It has established cannabis brands to Heal, Help and Play, with Heal symbolizing cannabis products consumed as prescribed medical therapies, Help products that support overall health and wellbeing via CBD, and Play that includes products for empowering social and spiritual occasions. The company runs two locations in Alberta, but it has announced plans to expand to British Columbia by building a new facility.Therapix Biosciences Ltd (NASDAQ: TRPX) Market Cap: $3.75MIsrael-based Therapix Biosciences is involved in developing a pipeline of drugs based on the FDA-approved cannabinoid Dronabinol, such as THX-110 for the treatment of Tourette syndrome and obstructive sleep apnea, THX-130 for mild cognitive impairments and THX-150 for the treatment of infectious diseases. Recently, Canadian marijuana producer FSD Pharma (OTC: FSDDF) announced that it would acquire Therapix Biosciences for $48 million in stock.Tilray Inc (NASDAQ: TLRY) Market Cap: $1.73BIn July 2018, Tilray became the first pure-play cannabis company to list on NASDAQ, and its stock quickly captured attention as it surged eightfold in just two months after the IPO.The company was founded in 2013, and in 2016 it became the first medical marijuana producer in North America to receive the good manufacturing practices certification. Tilray's production capacity currently lags behind giants like Aurora or Canopy Growth at around 15,000 kilograms. It has been investing in expansion and aims to have over 900,000 square feet of production capacity by the end of the year.22nd Century Group, Inc. (NYSE: XXII) Market Cap: $147.86MThis plant biotechnology company is mostly known for its workings in the tobacco industry, more precisely for its efforts to make smoking less unhealthy by minimizing the levels of nicotine in the tobacco plant. The company developed its own proprietary, reduced-nicotine tobacco varieties ending up with a tobacco product that looks, smokes and tastes like a usual cigarette but contains 95% less nicotine.22nd Century Group entered the cannabis space for the first time back in 2014 via a research collaboration with Anandia Labs, obtaining in that manner the U.S. right from Anandia to core patents covering the cannabinoid biosynthetic pathway in hemp/cannabis plants. Furthermore, the company got access to many new hemp-cannabis plant lines such as those with no THC, and those with higher levels of CBD or CBG, which are still part of its plant development pipeline. 22nd Century Group works on developing new hemp/cannabis plants with optimized and unique cannabinoid profiles and advantageous agronomic features.The company said its most valuable current partnership covering the hemp/cannabis industry is with KeyGene, an AgBiotech company with a specialty in crop enhancement by molecular breeding.Village Farms International, Inc. (NASDAQ: VFF) Market Cap: $276.14MVillage Farms International is a vertically integrated greenhouse grower and the only publicly traded greenhouse business in Canada. It manufactures and sells fresh produce from its large greenhouses located in Texas and British Columbia and its partner greenhouses in British Columbia, Mexico, and Ontario. The company is connected to the cannabis industry via its majority ownership position in Pure Sunfarms, a Canada-based cannabis growing operations. Furthermore, the company has plans to establish itself as a vertically integrated leader in the U.S hemp-derived CBD market, already having two joint ventures - Village Fields Hemp USA, LLC and Arkansas Valley Green and Gold Hemp LLC.Zynerba Pharmaceuticals Inc (NASDAQ: ZYNE) Market Cap: $104.16MZynerba Pharmaceuticals is focused on developing transdermal cannabinoid therapies for rare and near-rare neuropsychiatric diseases. Among its product candidates is ZYN002 CBD for children and adolescents with Fragile X syndrome, a genetic condition that causes intellectual disability, behavioral and learning challenges and is the most commonly known single-gene cause of autism spectrum disorder. Other targeted conditions include developmental and epileptic encephalopathies and adult epilepsy.Non-Cannabis Companies With Interests In The Space AbbVie, Inc. (NYSE: ABBV)Market Cap: $139.07BThis biopharmaceutical company works on creating solutions to help treat various health conditions, from those life-threatening diseases to other chronic disorders. Its core focus in on four therapeutic fields - oncology, neurosciences, virology, and immunology. Its main connection to the cannabis industry lies in its drug, called Marinol, or Dronabinol, which is created of a synthetic form of marijuana. Marinol is used to help with nausea and vomiting caused by chemotherapy, and also to treat the loss of appetite in patients suffering from AIDS.Altria Group, Inc. (NYSE: MO) Market Cap: $83.94BAltria Group is known as one of the biggest manufacturers and advertisers of tobacco, cigarettes and similar products in the world. While it runs its operations across the world, its main headquarters are located in Virgina, outside of the city of Richmond. Its connection to the cannabis sector is through its considerable stake in a Canada-based pure-play cannabis stock Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON).Scotts Miracle-Gro Company (NYSE: SMG) Market Cap: $6.83B This is a company that produces and sells consumer lawn, garden and pest control products, but some websites consider it a cannabis stock, only because its products can be used in the cannabis industry. In its 2019 Annual Report, the company also states under the 'risks' section that end user may buy their products to cultivate cannabis. "Our gardening products, including our hydroponic gardening products, are multi-purpose products designed and intended for growing a wide range of plants and are generally purchased from retailers by end users who may grow any variety of plants, including cannabis."Psychemedics Corporation (NASDAQ: PMD) Market Cap: $50.15M This is a provider of hair testing services for the detection of drugs of abuse, offering marijuana hair drug tests as well.This article was last updated in April of 2020.See more from Benzinga * This CBD Company Is Offering A 48-Hour Flash Sale, Products 50% Off * Green Rush Podcast: Punit Seth Of Toast Discusses Recruiting A Former Coca-Cola And AB InBev Executive To Help Him Build His Brand * Alchemy Podscast: Fyllo's Jeff Ragovin Talks With Cresco Labs' Cory Rothschild(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

    • Are Options Traders Betting on a Big Move in Aphria (APHA) Stock?

      Are Options Traders Betting on a Big Move in Aphria (APHA) Stock?

      Investors need to pay close attention to Aphria (APHA) stock based on the movements in the options market lately.

    • Aphria Inc. to Announce Third Quarter Fiscal 2020 Financial Results on April 15, 2020
      CNW Group

      Aphria Inc. to Announce Third Quarter Fiscal 2020 Financial Results on April 15, 2020

      Aphria Inc. to Announce Third Quarter Fiscal 2020 Financial Results on April 15, 2020

    • High Tide to Re-Open Canna Cabana Retail Cannabis Stores in Ontario
      CNW Group

      High Tide to Re-Open Canna Cabana Retail Cannabis Stores in Ontario

      CALGARY , April 8, 2020 /CNW/ - High Tide Inc. ("High Tide" or the "Company") (HITI.CN) (HITIF) (2LY.F), an Alberta -based, retail-focused cannabis corporation enhanced by the manufacturing and wholesale distribution of smoking accessories and cannabis lifestyle products, is pleased to announce that, as the result of an emergency order approved by Ontario's cabinet on April 7, 2020 , the Canna Cabana retail cannabis stores in Hamilton , Sudbury and Toronto (the "Ontario Stores") will re-open in compliance with the order's scope of operations during the prescribed 14-day period. Many of the staff who were temporarily laid-off from the Ontario Stores are being recalled to fulfill the newly permitted customer orders available to be placed online and by phone.

    • Marijuana Stocks Are Tumbling — Are Any Good Buys As Coronavirus Leads To Demand Spike?
      Investor's Business Daily

      Marijuana Stocks Are Tumbling — Are Any Good Buys As Coronavirus Leads To Demand Spike?

      Are marijuana stocks on U.S. exchanges a good buy now? The marijuana industry gets a lot of hype, but look past the smoke and analyze pot stocks on their fundamentals and technicals.

    • Barrons.com

      Coronavirus Has Been Good for Cannabis. But Ontario’s Pot Shops Are Deemed Not Essential.

      Canadian producers were counting on a rollout of new stores in the province to help lift the country’s disappointing sales growth.

    • High Tide Temporarily Closes Ontario Retail Cannabis Stores and Provides Business Update
      CNW Group

      High Tide Temporarily Closes Ontario Retail Cannabis Stores and Provides Business Update

      CALGARY , April 6, 2020 /CNW/ - High Tide Inc. ("High Tide" or the "Company") (HITI.CN) (HITIF) (2LY.F), an Alberta -based, retail-focused cannabis corporation enhanced by the manufacturing and wholesale distribution of smoking accessories and cannabis lifestyle products, today announced that, in compliance with the order issued by the Province of Ontario , the Canna Cabana locations in Hamilton , Sudbury and Toronto (the "Ontario Stores") were closed by 11:59 PM on Saturday, April 4, 2020 for a 14-day period after all retail cannabis stores were removed from the government's list of essential workplaces on Friday, April 3, 2020 . All retail staff at the Ontario Stores have been temporarily laid-off as the Company awaits further updates from the Province.

    • Aphria Inc. (APHA) Gains But Lags Market: What You Should Know

      Aphria Inc. (APHA) Gains But Lags Market: What You Should Know

      In the latest trading session, Aphria Inc. (APHA) closed at $2.89, marking a +1.05% move from the previous day.

    • High Tide Reports First Quarter 2020 Financial Results Featuring 173% Revenue Increase over the Same Period of the Previous Year
      CNW Group

      High Tide Reports First Quarter 2020 Financial Results Featuring 173% Revenue Increase over the Same Period of the Previous Year

      High Tide Reports First Quarter 2020 Financial Results Featuring 173% Revenue Increase over the Same Period of the Previous Year

    • Barrons.com

      Hexo and Cronos Reported Earnings, and These Pot Stocks Reacted Very Differently

      STOCK ALERT Marijuana firms (HEXO) and (CRON) both reported earnings on Monday—to far different effects. Hexo, which released its January quarter results before the market opened Monday, shed more than a quarter of its value.

    • Aphria Inc. Recognized for Executive Gender Diversity by Globe and Mail's Women Lead Here Benchmark and Provides an Update on COVID-19
      CNW Group

      Aphria Inc. Recognized for Executive Gender Diversity by Globe and Mail's Women Lead Here Benchmark and Provides an Update on COVID-19

      LEAMINGTON, ON , March 27, 2020 /CNW/ - Aphria Inc. ("Aphria" or the "Company") (TSX: APHA and NYSE: APHA), a leading global cannabis company, today is pleased to announce it has earned a spot on the Globe and Mail's inaugural Report on Business Women Lead Here ("Women Lead Here") list, an annual benchmark of executive gender diversity in corporate Canada . Launched in 2020, Women Lead Here uses proprietary research methodology to rank Canadian companies that have achieved or are nearing gender parity in executive ranks. In 2019, Aphria set a goal for its Executive Officers and Board of Directors to be comprised of 30 per cent females by 2021.

    • Aphria Inc. Recognized for Executive Gender Diversity by Globe and Mail's Women Lead Here Benchmark and Provides an Update on COVID-19
      PR Newswire

      Aphria Inc. Recognized for Executive Gender Diversity by Globe and Mail's Women Lead Here Benchmark and Provides an Update on COVID-19

      Aphria Inc. ("Aphria" or the "Company") (TSX: APHA and NYSE: APHA), a leading global cannabis company, today is pleased to announce it has earned a spot on the Globe and Mail's inaugural Report on Business Women Lead Here ("Women Lead Here") list, an annual benchmark of executive gender diversity in corporate Canada. Launched in 2020, Women Lead Here uses proprietary research methodology to rank Canadian companies that have achieved or are nearing gender parity in executive ranks.

    • Aphria Inc. (APHA) Gains As Market Dips: What You Should Know

      Aphria Inc. (APHA) Gains As Market Dips: What You Should Know

      In the latest trading session, Aphria Inc. (APHA) closed at $2.54, marking a +1.2% move from the previous day.

    • BofA On Organigram, Tilray, Aphria's Cash, Demand Trends

      BofA On Organigram, Tilray, Aphria's Cash, Demand Trends

      BofA Securities turned bearish on one cannabis stock, bullish on another and moved to a neutral stance on a third Thursday.Aphria Has Cash, Favorable Demand Trends Analyst Christopher Carey upgraded Aphria Inc. (NYSE: APHA) from Neutral to Buy and lowered the price objective from $8 to $5. The reasons behind the move are simple, the analyst said: the Canadian company holds ample cash, and the demand for cannabis is on the rise due to social distancing at home from consumers. (See Carey's track record here.)The firm's price objective reflects a 57% potential upside from current levels.Although the cannabis industry as a whole has dropped 57% since Feb. 20, according to BofA, demand is on the rise and Aphria has good chances of winning.Aphria's cash on hand is 53% of its market cap, Carey said.Organigram Should Meet Estimates Carey upgraded Organigram Holdings (NASDAQ: OGI) from Underperform to Neutral with a $1.72 price objective."In OGI, we see a company with focus capable of delivering consistent sales/profit," the analyst said, adding that he believes that the rise in demand could mean a tailwind for Organigram as well.With good positioning in the derivative products category, free cash flow in sight and sufficient liquidity, BofA expects the company to reach its fiscal year estimates, he said. The company's cash is tighter than that of its Buy-rated peers, which include Canopy Growth (NYSE: CGC), Cronos Group (NYSE: CRON) and the aforementioned Aphria, according to BofA. Tilray Downgraded To Underperform Carey downgraded Tilray Inc. (NASDAQ: TLRY) from Neutral to Underperform and slashed the price objective from $16 to $2.In the big picture, the analyst said he cannot conceive a scenario in which Tilray can compete with its industry peers.The company saw a big miss in sales objectives for the fourth quarter of 2019, which prompted a significant move in the stock price, he said. This was paired with a $90-million equity raise in an effort to raise cash, which ended up being dilutive for shareholders, Carey said.BofA considers this raise to have been unnecessary given that the company's liquidity is at $446 million.Photo by Esteban Lopez on Unsplash.Latest Ratings for APHA DateFirmActionFromTo Mar 2020B of A SecuritiesUpgradesNeutralBuy Mar 2020StifelInitiates Coverage OnHold Jan 2020B of A SecuritiesMaintainsNeutral View More Analyst Ratings for APHA View the Latest Analyst Ratings See more from Benzinga * Altitude Partner Roderick Stephan Talks Distressed Debt Investment In Cannabis * Analyst: Cannabis Companies Cautious About The First Half Of 2020(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

    • Here's Why This Pot Stock May Stand Out As Coronavirus Stokes Demand
      Investor's Business Daily

      Here's Why This Pot Stock May Stand Out As Coronavirus Stokes Demand

      Demand for weed has "noticeably increased" as the coronavirus pandemic forces people indoors, an analyst said.

    • Pot Sales Jump as More People Stay at Home: Bank of America

      Pot Sales Jump as More People Stay at Home: Bank of America

      (Bloomberg) -- More people stuck at home has led to a higher demand for cannabis, and Aphria Inc. is one of the best-positioned companies to take advantage of that trend, an analyst at Bank of America said.“Our checks across North America were consistent: regardless of region, cannabis purchases have accelerated,” analyst Christopher Carey said in a note. “While likely on pantry loading, it’s not unreasonable to think there will be some boost to per capita consumption as people stay at home longer.”This implies that pot is a defensive category, like alcohol and tobacco. Carey upgraded Aphria to buy from neutral, although he cut his price target to C$5 from C$8 to reflect the impact of market turbulence on cannabis shares. The company “could increasingly take a disproportionate share of increased demand” as its peers struggle, he said.Carey also raised Organigram Holdings Inc. to neutral from underperform, leaving his price target at C$2.50. The company appears capable of delivering consistent sales and profit, unlike many of its peers, with sufficient liquidity and free cash flow in sight, he said.Separately, Carey downgraded Tilray Inc. to underperform from neutral and slashed his price target to a Street low of $2 from $16 following last week’s share offering at a steep discount. This “very dilutive equity raise occurring amidst stock market turbulence” was a “significant confidence hit, in our view,” he said.Aphria shares rose as much as 9.5% in Toronto, while Organigram gained 5.5% and Tilray added 15%.(Adds share move in final paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

    • The ‘Cannabis Basket’ Approach for Long-Term Gains: 3 Stocks to Consider

      The ‘Cannabis Basket’ Approach for Long-Term Gains: 3 Stocks to Consider

      With the volatility in the stock market and especially the cannabis sector these days, one way to invest for the long-term is to buy a basket of stocks. The sector has had so many pitfalls due to regulations and company missteps that buying multiple stocks helps reduce any company specific risk and increases the odds of picking a couple of long-term winners in the sector.Investors should look at this as how a lot of the market participants invest in the biotech space. Picking winners in the sector can be difficult due to binary outcomes around drug testing and approvals. Investors buy baskets of biotech stocks since no investor wants to risk all of their capital to only one stock that could have a surprise negative outcome on a trial or FDA approval.While the cannabis sector doesn’t have the same binary risk, the market does have a ton of regulatory risk and splitting up investments between Canadian and U.S. companies helps reduce the risk of any negative outcome in one country. In addition, the market has bounced around from a shift to high THC value brands from an expectation for premium cannabis strains with moderate THC levels.The global cannabis market is still poised for substantial growth as the Canadian provinces allow additional retail stores and Cannabis 2.0 products expand and the U.S. continues to see state by state approvals of recreational cannabis. All while, international locations such as Mexico appear on the verge of approving cannabis use.With that in mind, we’ve delved into three cannabis stocks with solid potential for rewarding shareholders, especially when purchased as a basket of stocks. Using TipRanks’ Stock Comparison tool, we lined the there side by side to get the lowdown:Cresco Labs (CRLBF)The prime area to look first for an investment is within the U.S. multi-state operators (MSOs). Investors probably can’t go wrong with most of the stocks in the MSO space, but one favorite is Cresco Labs with legalization of recreational cannabis sales in Illinois.The company just obtained approval for a dispensary in downtown Chicago bringing their total stores in the state to six. Cresco Labs has licenses to open an additional four dispensaries in Illinois. The market estimates are for sales topping $2 billion and possibly reaching $4 billion after the state reached sales of $74 million in only the first two months after legalization on January 1.The MSO will soon have cultivation capacity of 243,000 square feet with the approval for three facilities to reach the largest capacity in the state at 630,000 square feet. Additionally, the company has operations in key markets like California, Arizona, New York, Ohio and Pennsylvania.The stock has a listed market value of only $523 million following a Q3 in which the company reported pro-forma revenues of $73.6 million. The closing of the Origin House deal will boost 2020 sales to over $500 million with analysts predicting sales reaching $800 million in 2021.In an upbeat report, analyst Glenn G Mattson of Ladenburg Thalmann explained why he is initiating coverage on Cresco Labs with a Buy rating and a $8 price target: "We believe that given Cresco’s attractive footprint, its sound long-term strategy and its record of profitability the company deserves a premium valuation. The introduction of adult recreational cannabis in Illinois, a state where Cresco maintains the top market share, is the key potential catalyst to propel revenue growth. This along with the prospect for other key states especially in the northeast to convert to adult recreational use later in 2021 should provide a significant catalyst for the company over the course of the year." (To watch Mattson's track record, click here)What does the rest of the Street think? It turns out that they wholeheartedly agree with Mattson. With 5 Buy ratings and no Holds or Sells, the message is clear: Cresco Labs is a Strong Buy. If that wasn’t enough, the $10.82 average price target puts the upside potential at 324%. (See Cresco Labs stock analysis on TipRanks)Aphria (APHA)Even Aphria hasn’t been saved from the market selloff with the stock hitting new multi-year lows of $2.06. The company may not even meet recent guidance provided only a few months ago, but the market is now pricing in substantial weakness with the market value close to $600 million.Aphria provides an investor buying this basket with access to the Canadian cannabis market and the potential to participate in global cannabis sales. The Canadian market is slowly heading towards opening more retail stores with Ontario starting to add 20 new stores per month in April and the slow roll-out of Cannabis 2.0 products.The cannabis company recently guided to FY20 revenues in the C$600 million range with adjusted EBITDA of ~C$80 million. Analysts don’t have the company even hitting these targets, but revenues are expected to jump to C$715 million or $519 million in FY21 (May).The recent license of their Aphria Diamond production site provides Aphria with access to more low-cost cannabis. The biggest risk to the story is over producing product in a weak sales environment with production capacity more than doubled to 255,000 kg of premium weed.All in all, shares in APHA are priced at just $2.23, a bargain for a stock with over 170% average upside potential. That potential is derived from the average price target of $6.08. With 4 Buy and 3 Hold ratings given in recent weeks, the analyst consensus on APHA is a Moderate Buy. (See Aphria stock analysis on TipRanks)Valens GroWorks (VLNCF)The wild card on this list is Valens GroWorks. The company focuses on cannabis extractions for oils and Cannabis 2.0 products.The company recently reported revenues grew 86% during FQ4 ending in November to C$30.6 million. Valens even produced an amazing EBITDA of C$17.7 million for the quarter, or 57.7% margins.The fear in the stock is that slowdowns in the cannabis sector will eventually hit the company. The focus on white-label products might save Valens from the destruction in the space.After year end, the cannabis extraction company began formulating 19 SKUs to meet customer demands for Cannabis 2.0 products in the categories of vape pens, edibles and concentrates, amongst other categories. In addition, Valens recently bought Pommies Cider Co. to accelerate its entry into the cannabis-infused beverage space and edibles.Valens only extracted ~24,000 kg of dried cannabis in the last quarter for an annualized rate of 100,000 kg. The company has expanded extraction capacity to 425,000 kg providing substantial upside growth potential as the Canadian market grows over time.AltaCorp Capital analyst David Kideckel has Valens generating 2021 revenues of $246 million and adjusted EBITDA of $108 million. Both very solid numbers for a stock with a market value of only $178 million.The stock only trades at slightly above 1.0x those sales estimates and 2.5x EBITDA estimates. With several growth opportunities, Valens provides an interesting stock for a basket of cannabis stocks.Judging from the consensus breakdown, it has been relatively quiet when it comes to analyst activity. Over the last three months, only 2 analysts have reviewed Valens. Both of which, however, were bullish, making the consensus a Moderate Buy. On top of this, the $6.56 average price target puts the upside potential at 332%. (See Valens stock analysis on TipRanks)To find good ideas for cannabis stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

    • 10 SPAC IPO Stocks to Buy As the Market Enters Bear Territory

      10 SPAC IPO Stocks to Buy As the Market Enters Bear Territory

      Not many investors are familiar with special purpose acquisition companies (SPACs), a special breed of IPO stocks that enable well-connected sponsors to raise hundreds of millions of dollars from the public markets.Often referred to as blank-check companies or blind pools, the sponsors have 24 months from the day the IPO funds are raised to acquire an operating business. That business is then combined with the SPAC through a reverse merger, turning the private company into a public one.SPACs first came into being in the 1980s, used by penny-stock promoters, to make millions off unsuspecting investors. As a result, the federal government introduced the Penny Stock Reform Act of 1990, which took steps to stop these fraudulent activities.InvestorPlace - Stock Market News, Stock Advice & Trading TipsLater in the decade, financier David Nussbaum reintroduced SPACs, focusing on legitimizing this form of IPO stocks through the use of specific requirements such as putting the funds raised in escrow and putting a time limit on the amount of time to make a qualifying acquisition.The other day I wrote about "10 Ways to Diversify Your Portfolio at This Time of Crisis." Although I mentioned several different options to help lessen the blow to your investment portfolio at this challenging time, one option I didn't bring up was SPACs.Back in 2007, SPACs gained popularity with hedge funds as a way to protect their capital against downside threats, while generating a good yield and providing potential upside should an acquisition get completed within the 24 months.In 2019, there were 59 SPAC IPOs that collectively raised $13.6 billion. As the bull run looks to be coming to an end, I suspect the SPAC hedge is going to come back into fashion. * 7 Stocks to Sell as We Enter a Bear Market If so, here are 10 SPAC IPO stocks to buy now. Five have recently completed or found a target company, while five have yet to find an acquisition. IPO Stocks: Virgin Galactic (SPCE)Source: Christopher Penler / Shutterstock.com As far as SPACs go, the merger between Social Capital Hedosophia, which raised $600 million in September 2017 for its first of three SPACs, and Richard Branson's space travel company, Virgin Galactic (NYSE:SPCE), is as a big deal. The merger was first announced in July 2019. The combination created a company with an enterprise value of $1.5 billion. Branson's Virgin Group owns 58.7% of the business with Social Capital's shareholders owning the rest. Recently, I suggested that Virgin Galactic could be the next Tesla (NASDAQ:TSLA). Although it plans to develop a large space tourism business, the commercial applications of space flight are tremendous. The company expects its first space flight to happen later this year. With 8,000 people signed up ready to spend $250,000 to go into space, and many more to come out of the woodwork once a successful flight is in the books, the future revenue potential is tremendous. However, this is not a stock for those who can't see the long-term picture; risks will remain high for several years. Act II Global Acquisition / Merisant / Whole Earth (ACTT)Source: Shutterstock On Dec. 20, 2019, Act II Global Acquisition Corp. (NASDAQ:ACTT) announced that it was combining with Merisant Company and MAFCO Worldwide LLC. Both are currently owned by MacAndrews & Forbes, the holding company of billionaire Ronald O. Perelman. Merisant specializes in zero and low-calorie sugar substitutes, while MAFCO is the world's leading maker of natural licorice products. The two businesses and Act II will operate under the name Whole Earth Brands, which includes the Whole Earth brand of sweeteners.The chairman of Whole Earth Brands is Irwin Simon, the current CEO of Aphria (NYSE:APHA), a Canadian cannabis company. Before Aphria, Simon co-founded and was CEO of Hain Celestial Group (NASDAQ:HAIN), one of the world's largest natural and organic foods company. Once trading on Nasdaq, Whole Earth Brands will have an enterprise value of $575 million, 8.1 times 2020 pro forma EBITDA of $71 million. Simon and CEO Albert Manzone plan to use the company's stable free cash flow to grow its business organically and through acquisitions. * 7 Stocks to Sell as We Enter a Bear Market Simon's involvement makes this an exciting company to watch. Repay Holdings (RPAY)Source: Shutterstock Repay Holdings (NASDAQ:RPAY) announced in January 2019 that it was merging with Thunder Bridge Acquisition Ltd., a SPAC that raised $225 million ($25 million higher than initially proposed) in June 2018. Repay operates a proprietary, integrated payment technology platform that reduces improves the customer experience while simplifying the process for merchants. The management team, including co-founder and CEO, John Morris, stayed on to run the company. In 2018, Repay processed approximately $7 billion of payment volume for personal loans, car loans, and receivables management. Thunder Bridge paid $581 million for Repay. It is led by Gary Simanson, who previously founded Endeavor Capital Management, a New York-based boutique private equity firm. In August of last year, Simanson raised $300 million for Thunder Bridge Acquisition II Ltd. (NASDAQ:THBR), a SPAC geared to finding another fintech acquisition. Diamond Eagle Acquisition / DraftKings / SBTech (DEAC)Source: Shutterstock In late December, Diamond Eagle Acquisition Corp. (NASDAQ:DEAC) announced it would combine with DraftKings and SBTech, to form a $3.3 billion vertically integrated sports betting and online gaming company. Once the combination is complete sometime in the first half of 2020, it will operate as DraftKings, and trade under a new stock symbol. The three-way merger comes more than two years after DraftKings and FanDuel canceled their merger over concerns from the Federal Trade Commission. For those needing a program to tell who's who, Diamond Eagle Acquisition is the fifth SPAC for Hollywood executives Harry Sloan and Jeff Sagansky. This particular version raised $400 million in May 2019. Since 2011, the five SPACs have raised a total of $1.7 billion. If anyone can make this work, it's these two guys. If you bet on sports, you've probably heard DraftKings. I've yet to see anything come up due to the coronavirus, but I would guess it might postpone when the deal gets done. DraftKings just announced their annual results -- it generated $323 million in sales in 2019, 43% higher than a year earlier -- and while they were good, if there aren't any professional sports teams playing, there wouldn't be anything to bet on, severely reducing short-term revenues. As for SBTech, it provides its clients with betting and gaming solutions, which is why this unusual three-way combination makes sense. * 7 Stocks to Sell as We Enter a Bear Market Like all SPAC acquisitions, Diamond Eagle's shareholders have to vote in favor of the transaction for it to go ahead. With the coronavirus beginning to take a toll on U.S. sporting events, it's suddenly not a sure thing. Leisure Acquisition / Gateway Casinos & Entertainment (LACQ)Source: Michał Parzuchowski via UnsplashAlso in the world of betting, Leisure Acquisition Corp. (NASDAQ:LACQ) announced on December 27, 2019, that it would combine with Gateway Casinos & Entertainment, a Canadian casino operation with 25 gaming and entertainment destinations, 12,800 slot machines, 365 table games, and 72 food and beverage outlets. Shareholders of the SPAC will receive one share of Gateway on a one-to-one basis. Any outstanding warrants to purchase shares of Leisure Acquisition will be converted to warrants to purchase Gateway stock at $11.50 a share. Gateway will be listed on the NYSE and trade under the symbol GTWY.Also, HG Vora Capital Management has agreed to buy 3 million units of Gateway for $10 per unit in a private placement. The cash from the private placement along with the money from Leisure Acquisition's trust account and any excess cash on both companies' balance sheets will go to pay down Gateway's $154 million in debt. In 2020, Gateway is expected to generate adjusted EBITDA of $149 million on $659 million in revenue. That puts Gateway's enterprise value at 7.5x 2020 adjusted EBITDA.Long-time gaming executive Marc Falcone will take the reins as its chief executive. Current Gateway CEO, Tony Santo, will retire. Flying Eagle Acquisition (FEAC)Source: Shutterstock.com Harry Sloan and Jeff Sagansky have done it again. On March 5, the duo sold 60 million units of Flying Acquisition Corp. (NASDAQ:FEACU) at $10 per unit. Five days later, the underwriters exercised their 15% over-allotment and bought another 9 million units at $10 per unit. In addition to one share of Class A common stock (symbol FEACon NASDAQ), investors got one-fourth of one warrant, with each warrant entitling the investor to buy another share for $11.50. The shares began trading on March 6. The sixth SPAC from the duo, it raised gross proceeds of $690 million. The pair aren't limiting their search to one particular industry. The net funds raised, after subtracting for $800,000 in offering expenses and initial working capital of $450,000 will be kept in a trust account bearing interest at 1.5% annually. If an acquisition isn't found within 24 months, the funds in the trust account would be returned to investors. * 7 Stocks to Sell as We Enter a Bear Market The chances are excellent; they'll figure something out. Acamar Partners Acquisition (ACAM)Source: Shutterstock.com Acamar Partners Acquisition Corp. (NASDAQ:ACAMU) sold 30 million units at $10 per unit on February 22, 2019. The units consist of one Class A common stock (symbol ACAM on NASDAQ) one-third of a warrant (symbol ACAMW on NASDAQ) with each warrant entitling the investor to buy another share for $11.50.The management team includes Chairman Juan Carlos Torres, the Executive Chairman of Dufry (OTCMKTS:DUFRY), the world's largest travel retailer, and Luis Solorzano, who has 19 years of private equity experience with Advent International and is expected to step into the role of CEO. The target company will operate in the consumer and retail sectors. Possible areas of interest include travel retail, food and beverage, luxury goods, fashion, lifestyle and leisure products and services, and consumer branded products. Given both men's backgrounds, it makes sense that they're going after consumer-facing businesses. More than one year into the 24-month acquisition requirement, the coronavirus might provide them with a few more opportunities in the coming months. Conyers Park II Acquisition (CPAA)Source: Shutterstock On July 17, 2019, the Conyers Park II Acquisition Corp. (NASDAQ:CPAAU) sold 40 million units at $10 per unit. In addition, underwriters exercised part of their over-allotment, buying an additional five million units at $10 per unit, raising gross proceeds of $450 million. Each unit included one Class A common share (symbol CPAA on NASDAQ) and one-fourth of one warrant with each warrant (symbol CPAAW on NASDAQ), entitling the investor to buy another share for $11.50.I think by now, you're starting to get a general idea of how SPACs are structured. Mainly, you buy units at $10, get one common share, and a fraction of a single warrant to buy an additional share at $11.50. The only thing that generally changes is the fraction. Like a lot of SPACs, Conyers Park is sponsored by Centreview Capital, a private equity firm that specializes in consumer and technology companies. In July 2016, Centreview launched Conyers Park Acquisition Corp., raising gross proceeds of $402.5 million. Less than a year later, it combined with Atkins Nutritionals Inc., renaming the business Simply Good Foods (NASDAQ:SMPL). * 7 Stocks to Sell as We Enter a Bear Market While it hasn't identified a specific area to invest, it intends to focus on the consumer sector. Haymaker Acquisition II (HYAC)Source: Shutterstock One of the critical ingredients for SPACs looking to raise a lot of money is the people involved. You wouldn't give a plug nickel to someone with little experience. However, if Steven Heyer, a former CEO of Starwood Hotels & Resorts, were involved, you'd likely consider investing. Well, Heyer is the CEO and Executive Chairman of Haymaker Acquisition Corp. (NASDAQ:HYACU), which raised $400 million in gross proceeds last June, including the exercise of a $50 million over-allotment from underwriters. Each unit included one Class A common share (symbol HYAC on NASDAQ) and one-third of one warrant with each warrant (symbol HYACW on NASDAQ), entitling the investor to buy another share for $11.50.Like several of these SPACs, Heyer and company are focusing on companies operating in consumer-related industries. It's open to a provider of products, services, or both. The ideal target has an enterprise value of $750 million or more, is growing, and has an asset-light business model.Heyer previously headed up Haymaker Acquisition Corp., which raised $330 million in October 2017, combining with OneSpaWorld Holdings (NASDAQ:OSW) in March 2019. Unfortunately, OSW specializes in providing health and wellness services aboard cruise ships. Its stock's lost 60% of its value in the past month. Extreme value investors might want to take a sniff around OSW stock. Oaktree Acquisition (OACU)Source: Photo from CreditRepairExpertIn July 2019, Oaktree Acquisition Corp. (NYSE:OACU) raised $201.25 million, selling 20.125 million units at $10 a share. That includes the exercise of the 15% over-allotment by the underwriters. Each unit included one Class A common share (symbol OAC on NASDAQ) and one-third of one warrant with each warrant (symbol OACWS on NASDAQ), entitling the investor to buy another share for $11.50.If you own shares in Brookfield Asset Management (NYSE:BAM), you're probably familiar with Oaktree Capital Management (NYSE:OAK.A, NYSE:OAK.B), the SPACs sponsor. Oaktree Capital is an investor of distressed debt that was co-founded by Howard Marks; it is now majority-owned by the Canadian alternative asset manager. While its mandate is wide open, it will focus on a business combination in the industrial and consumer sectors, where it feels it can bring its years of experience to the table. * 7 Stocks to Sell as We Enter a Bear Market With Brookfield involved, you can be sure a combination will get done by July 2021. Will Ashworth has written about investments full-time since 2008. Publications where he's appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * America's Richest ZIP Code Holds Wealth Gap Secret * 7 Stocks to Sell as We Enter a Bear Market * 4 Energy Stocks Paying Jaw-Dropping Dividends * 3 Stocks to Buy That Will Dodge Any Volatile Market The post 10 SPAC IPO Stocks to Buy As the Market Enters Bear Territory appeared first on InvestorPlace.

    • Where To Hide In The Cannabis Space

      Where To Hide In The Cannabis Space

      The market is reeling from COVID-19 and seems to have little patience for the minute movements of marijuana. But one analyst sees great potential in cannabis.The AnalystCantor Fitzgerald analyst Pablo Zuanic maintained Overweight ratings on Trulieve Cannabis Corp (OTC: TCNNF) (CNSX: TRUL) with a $30 price target and on Aphria Inc (NYSE: APHA) with a C$11.50 target."We realize that in the current context, cannabis/CBD stocks would not be at the top of the list for investors regarding places to hide or even bottom fishing," Zuanic wrote in a note, countering that Trulieve and Aphria are lower risk and attractively valued after underperforming before and during the crisis.The Trulieve ThesisTrulieve claims the highest U.S. margins in earnings before interest, tax, depreciation and amortization (EBITDA). For this and other reasons, Zuanic prefers Trulieve to Cresco Labs (OTC: CRLBF) -- his only other Overweight U.S. cannabis stock. The company boasts about 50% of the Florida market, where it gleans more than 98% of its revenue."While FLA will not go rec[reational] for now (rec will not be in the ballot this November), the med[ical] market continues to grow at a robust pace," the analyst wrote, estimating 25% sequential revenue growth.He considers the company's levered debt manageable.The Aphria ThesisZuanic considers Aphria superior in valuation, balance sheet, cash flow and underlying trends. By his assessment, the company is poised to increase cannabis contributions toward EBITDA and reduce cash burn with the activity of its Diamond facility."The company has taken a prudent approach to M&A, but in the current context we would expect it to tap into opportunities that can improve capabilities and or open new growth platforms," he wrote.Related Links:Seth Rogen And Evan Goldberg's Houseplant Launches In Alberta, CanadaCanopy Growth Will Shut Down 2 Facilities, Lay Off 500 Employees In 'Production Optimization Plan'Latest Ratings for APHA DateFirmActionFromTo Mar 2020StifelInitiates Coverage OnHold Jan 2020B of A SecuritiesMaintainsNeutral Jan 2020CiBCUpgradesUnderperformerNeutral View More Analyst Ratings for APHA View the Latest Analyst RatingsSee more from Benzinga * Sanctions, Stimuli And COVID-19: Today's Oil News * Former General Electric CEO Jack Welch Dies At 84 * Why This Chesapeake Energy Analyst Has A Zero Price Target(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

    • MarketWatch

      Stifel initiates cannabis producer Aphria coverage with a hold rating, Hexo with a sell

      Sell-side analysts at Stifel initiated coverage of Aphria Inc. with a hold rating and Hexo Corp. with a sell rating on Tuesday. Stifel analyst W. Andrew Carter writes in the Aphria note that his bank is beginning with a C$4.50 target price target. Aphria's revenue growth and strong balance sheet underpins the rating, balanced by the bank's outlook for the business to scale and offer margins much like other consumer packaged goods companies, Carter writes. Stifel is modelling 89% cumulative annual growth from the Ontario-based company's weed operations over the next two years and that it will maintain its market share under Canada's recreational regime. But, Carter says his team expects ongoing expenses and uncertainty related to Canada. Turning to the Quebec-based Hexo, Carter writes that the C$1.15 target price and sell rating reflects the bank's view that the marijuana company has "precarious positioning" in Canada. Hexo's ongoing cash crunch and a management "credibility gap" will be difficult to overcome, Carter writes, and the company has limited potential to drive the "robust growth outlined by the company." Because Hexo executives have so aggressively talked about growth, Carter says that institutional investors will not give them any benefit of the doubt and that the company will have to execute "through the current environment to attract interest, let alone drive enthusiasm for shares." Stifel also outlined a "liquidation scenario" that values Hexo at C$0.84 and said that the company's exposure to Quebec has created barriers to growth because policymakers have enacted "incremental restrictions limiting the growth potential of the category." U.S.-traded shares of Hexo rose 1.4% to $0.95 in afternoon trading Tuesday, as Aphria shares climbed 1.2% to $2.88. The Cannabis ETF fell 0.3% Tuesday and the S&P 500 index gained 1.7%.

    • Barrons.com

      Even Marijuana Companies May Suffer From the Coronavirus, Analyst Says. Watch the Vape Supply Chain.

      You might think the cannabis business would go untouched by the coronavirus as people stay home and look for ways to allay anxiety. But there could be problems.

    • Why Aphria (APHA) Stock Is a Buy Below $4

      Why Aphria (APHA) Stock Is a Buy Below $4

      In the blink of an eye, Aphria (APHA) dipped to the lows $3s. The Canadian cannabis company remains the prime investable stock in the sector with the best combination of facilities, revenues and cash on the balance sheet. Despite all the positives, the stock is down nearly 70% from the highs this time last year providing the chance that investors shouldn’t pass up.Low InventoryPossibly the best part of the Aphria story was the company not wildly build facilities in 2019. In the process, the company didn’t build up a large inventory before the Canadian cannabis market was fully ready for sales.The company ended the November quarter with only C$152 million in inventories. Aphria started the fiscal year with just C$92 million in inventory. Of these inventories, nearly C$37 million is related to the distribution business and another C$20 million are unrelated to cannabis. The company even had to purchase inventories in the last quarter due to a lack of production.The prime reason for the low inventories in comparison to the expected sales was the completion of their Aphria Diamond facility didn’t occur until the end of 2019. The new facility has cultivation capacity of 140,000 kg and brings their total production capacity up to 255,000 kg.Aphria only sold 7,062 kg of cannabis in the quarter ending November. The company will now have the cultivation capacity for 63,750 kg per quarter so how the company manages the expense base with the actual consumer demand will be crucial.Strong Balance SheetThe number one factor for success in the cannabis sector could very well be the balance sheet. Aphria ended the last quarter with nearly C$500 million in cash and the company raised another C$100 million during the quarter from a strategic investor back in January when stock prices were far higher.The company basically has C$600 million in cash while already having a cash flow positive business. Even after cutting guidance for the fiscal year, Aphria has guided the year towards adjusted EBITDA of between C$35 million to C$42 million.Along with the nice cash balance, Aphria actually has a real business with FY20 revenue targets of C$600 million. The company expects a decent ramp in cannabis sales this year due to the higher cultivation levels along with additional retail stores in Canada and Cannabis 2.0 products.The stock valuation is now below $1 billion while all these positives are coming together for the company. Other companies with large cash balances either don’t have positive cash flows in Canopy Growth or don’t have material revenues in Cronos Group.Consensus VerdictWall Street is pretty upbeat about the company. TipRanks analysis of 6 analyst ratings shows a consensus Moderate Buy rating, with 4 analysts Buying and 2 recommending Hold. The average price target among these analysts stands at US$6.8, representing nearly 105% increase from current levels. (Discover how the overall price target for Aphria breaks down here)TakeawayThe key investor takeaway is that Aphria is well positioned to benefit from a Canadian cannabis market primed for positive catalysts in 2020 – new retail stores and Cannabis 2.0 products. The market is throwing away this stock at $3.50 while the company should benefit from reduced competition as other industry players are forced out of business or required to cut operations.Aphria is the one Canadian stock with a reasonable valuation and a solid balance sheet to buy on this weakness.To find more good ideas for cannabis stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched platform that unites all of TipRanks’ equity insights.Disclosure: No position.Disclaimer: The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities.