|Bid||40.95 x 800|
|Ask||40.97 x 1800|
|Day's Range||40.61 - 41.41|
|52 Week Range||36.65 - 82.18|
|Beta (3Y Monthly)||1.91|
|PE Ratio (TTM)||8.46|
|Earnings Date||Jul 31, 2019 - Aug 5, 2019|
|Forward Dividend & Yield||1.60 (3.56%)|
|1y Target Est||53.44|
Trinseo , a global materials solutions provider and manufacturer of plastics, latex binders and synthetic rubber, today announced that its Board of Directors authorized a quarterly dividend of $0.40 per share.
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Trinseo SA NYSE:TSEView full report here! Summary * ETFs holding this stock are seeing positive inflows * Bearish sentiment is low * Economic output in this company's sector is expanding Bearish sentimentShort interest | PositiveShort interest is extremely low for TSE with fewer than 1% of shares on loan. This could indicate that investors who seek to profit from falling equity prices are not currently targeting TSE. Money flowETF/Index ownership | PositiveETF activity is positive. Over the last month, ETFs holding TSE are favorable, with net inflows of $1.12 billion. Additionally, the rate of inflows is increasing. Economic sentimentPMI by IHS Markit | PositiveAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Basic Materials sector is rising. The rate of growth is weak relative to the trend shown over the past year, but is accelerating. Credit worthinessCredit default swapCDS data is not available for this security.Please send all inquiries related to the report to firstname.lastname@example.org.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
Today we'll evaluate Trinseo S.A. (NYSE:TSE) to determine whether it could have potential as an investment idea. To be...
The global cannabis market is growing fast; it is currently valued at about $15 billion dollars and is expected to hit $150 billion by 2025 – a growth factor of 10, in just 6 years. Not many industries can boast that sort of return, and the potentialities of it are attracting established corporate interest in the cannabis companies. Alcohol and tobacco producers, especially, are making moves to enter the cannabis field, as a logical addition to current product lines. Dwelling in such an active market space, cannabis also draws attention from some of Wall Street’s best stock analysts.Martin Landry (Track Record & Ratings) is a five-star analyst with GMP FirstEnergy, and specializes in the consumer product and healthcare sectors. Legal cannabis, at the juncture of those two market segments, is squarely in his sights.In a series of recent reports and research notes, Landry turned his expertise on the emerging marijuana market. He takes note of cannabis’s recreational sector, and expresses his belief that the true future for this industry is in the medical field, supported by the linked factors of increasing numbers of patients, increasing numbers of prescribing doctors, and an expanding extract business giving both patients and doctors more options.In addition to his holistic view of the cannabis market, Landry also narrows his focus to particular cannabis companies. In recent weeks, he turned his gaze on two Canadian players, Canopy Growth and Cronos Group. Putting Canopy and Cronos together with TipRanks’ Stock Comparison tool, we can unpack their current market performance, and get a sense for where each is headed. It’s clear at a glance that Canopy is the larger company, with triple the market cap and share price – but Cronos has more than double the yearly equity gain. The analyst outlook on the two companies diverges even more sharply: Cronos has a ‘Moderate Sell’ rating, while Canopy has a ‘Moderate Buy’ consensus along with a 27% upside potential. A closer look at the data, and at Landry’s comments, will lay out the differences between them.View Canopy & Cronos in the TipRanks Stock Comparison ToolCanopy and Cronos trade in both Toronto and New York. Since both companies were first established in Canada, and remain headquartered there, we’ll use their Toronto Stock Exchange tickers and give prices in Canadian dollars. Canopy Growth Corporation (TSE:WEED – Research Report)Landry recently attended an invited tour of Canopy’s British Columbia greenhouse facilities, which he described as “running smoothly across all areas of production, trimming, and drying.” In his opinion, those facilities show potential for an annual production of 300 tons of cannabis and extract products.The BC greenhouses, of course, are only a small part of Canopy’s operations. The company controls over 5.5 million square feet of growing space, with over 4.4 million of that in licensed use. Canopy is currently producing over 10 tons per quarter, and is aiming for peak production, in two to three years, of 500 tons annually, or roughly twelve times current production. Landry is satisfied that Canopy can achieve this; back to his BC greenhouse tour, he said, “With a number of harvests already under the belt, the ramp up focus is on increasing yields and shortening cycle time. WEED expects it can achieve an equivalent of over four harvests per year.”Increased production potential is only one of Canopy’s advantages; the company has been at the center of two acquisition deals in recent months. In the first, announced last summer, Constellation Brands (STZ) – a giant in the international alcohol industry, and owner of Corona beer – increased its holding in Canopy from 10% to 38% with a US$4 billion investment. The move gives Constellation access to Canopy’s marijuana extracts to use in the production of cannabis infused beverages, while giving Canopy access to Constellation’s international network for beverage production and distribution.The Constellation investment gave Canopy a windfall of cash, which the cannabis company used in its turn to acquire Acreage Holdings (TSE:ACRG.U). Acreage, while headquartered in British Columbia, operates major cannabis production and distribution networks in the United States, with a presence in 20 states. The Canopy acquisition deal, worth US$3.4 billion, is unique in that it will not take effect until the US Federal government legalizes cannabis nationwide. To lock it in, Canopy has put down US$300 million.These two corporate maneuvers have put Canopy – and Constellation, for that matter – in a strong position to take advantage of new markets and expanding sales in the cannabis market.Landry gives WEED shares a target price of C$72, suggesting a 19% upside to the stock, and reflecting his optimism that the company can reach its production goals in the near-term. Canopy’s analyst consensus rating, a ‘Moderate Buy’ based on 7 buys and 4 holds from all of the analysts over the past three months, suggests that Landry is not alone in his upbeat outlook. The stock’s C$76 average price target gives it a 27% potential upside from the C$60 current share price.View TSE:WEED Price Target & Analyst Rating Detail Cronos Group, Inc. (TSE:CRON – Research Report)Cronos is the fourth-largest cannabis producer in North America, and a major competitor of Canopy. The size difference between the two companies, however, is obvious when comparing the recent quarterly production numbers. Cronos reported selling over 1.1 tons of cannabis products – only one-ninth the production of its larger rival.A larger problem for Cronos, however, lies in processing and packaging. The company has not yet fully developed these systems, and ended the March quarter with over 380 kilograms of finished product sitting in inventory. Landry points out this bottleneck in his review of the company, saying, “Cronos is testing investor patience with a slow production ramp-up and bottlenecks for processing and packaging. We believe these issues will be resolved before the summer which should result in a stronger back half for the company.”The bottlenecks, and the relatively low production, have impacted share price. CRON shares are down 36% since March. The fall in share price brings up the obvious question, should investors buy this stock on the dip? The decline, and the matter of purchase timing, also drew attention from Landry: “While Cronos’ shares have declined significantly from their 52-week high, we see limited near-term catalysts and investors should await a better entry point.”Like Canopy, Cronos has recently seen acquisition interest from a major “sin” company. In December, Altria Group (MO), one of the world’s largest tobacco companies, announced that it is acquiring a 45% stake in Cronos for C$2.4 billion ($1.8 billion in US currency). The move gives Cronos two immediate advantages: an infusion of cash, and more importantly, access to Altria’s know-how in processing and packaging. This acquisition deal underlies Landry’s belief that Cronos can resolve those bottlenecks by year’s end.For a longer-term advantage, Cronos will also have access to Altria’s sales and distribution network. As the maker of Marlboro cigarettes, Altria’s networks are a considerable asset, with an obvious marketing connection to the cannabis industry. Cronos CEO Mike Gorenstien noted all of these advantages when he said of the Altria deal, “We’re delighted to have officially closed our transaction with Altria and to kick off a relationship we expect to lead to significant growth and value creation. Altria’s investment and the services that Altria will provide to Cronos Group will enhance our financial resources and allow us to expand our product development and commercialization capabilities.”Analyst Landry puts a C$21 price target on CRON, suggesting a modest 4.6% upside to the stock. This goes along with his ‘Hold’ rating. Even so, his outlook on the stock is more upbeat than the analyst consensus of ‘Moderate Sell.’ That consensus is based on 1 buy, 6 holds, and 4 sells given in the past three months. Shares sell for C$20 in Toronto, to the C$20.60 average price target yields a 2.6% upside potential.View TSE:CRON Price Target & Analyst Rating Detail Enjoy Research Report on the Stocks in this Article:Canopy Growth Corporation (TSE:WEED) Research ReportCronos Group, Inc. (TSE:CRON) Research Report
The cannabis market has the potential to be extremely lucrative for investors. For example Quebec-based cannabis grower Hexo Corp (HEXO) is now up 107% year-to-date. But you have to know which stocks to look out for- as not all cannabis stocks are primed for success. And one way to go about this is to find the stocks with the most bullish outlook according to the Street. Here we delve deeper into three such stocks, that all show a ‘Strong Buy’ consensus from top-performing analysts. These are the analysts who consistently outperform the market, so their advice is worth following. Let’s take a closer look now: GW Pharmaceuticals (NASDAQ:GWPH)There’s no denying that this cannabis biotech is on a roll. GWPH develops and commercializes plant based cannabinoid therapies. Its key drug Epidiolex is marketed for the treatment of seizures associated with LennoxGastaut syndrome and Dravet syndrome. And with a strong Epidiolex launch and uptake trends so far, management is already demonstrating impressive execution in a very competitive market.Most notably, GWPH has just reported Epidiolex revenues of $33.5M, more than double some estimates, thanks to uptake among new patients and the transition from expanded access and open-label extension programs (EAP/OLE) to commercial product. Even more importantly, the company also shared positive topline results from a Phase 3 study of Epidiolex in patients with seizures associated with tuberous sclerosis complex (TSC).Such strong earnings prompted Oppenheimer’s Esther Rajavelu to upgrade GWPH from ‘Hold’ to ‘Buy.’ Following this upgrade, GWPH has now received 10 back-to-back buy ratings from analysts covering the stock in the last three months. That’s with a $220 price target, indicating upside potential of over 23%. “GWPH is uniquely positioned as the only phytocannabinoid company with an FDA-approved, marketed therapeutic agent (Epidiolex), and a validated platform it can leverage broadly” Rajavelu told investors.She continues: “Our Outperform thesis is based on our view that the potential for Epidiolex use in multiple seizure types including those associated with tuberous sclerosis complex, as well as other pipeline opportunities, are not fully reflected in the stock at current levels.” Following the latest trial results, the analyst updated the the probability of approval of the sNDA (supplemental new drug application) for TSC to 87% from 41% previously, and expects the filing to be submitted in Q4. Interestingly, UK-based GWPH also boasts a ‘perfect’ Smart Score of 10/10. This new rating system compiles 8 different data sets- from analyst ratings to the latest insider activity- to rank stocks out of ten. Here GWPH scores highly not just with the analysts but also with both bloggers and hedge funds. That's alongside Very Positive news sentiment, and positive momentum with shares up 22% over the last year. See what other Top Analysts are saying about GWPH. Aphria Inc (NYSE:APHA)GWPH isn’t the only cannabis stock out there with strikingly positive Street sentiment. Canadian cannabis giant Aphria has also received only buy ratings from analysts in the last three months. That’s despite a horrific 2018 featuring a takeover attempt and short seller allegations of devious insider dealings. But with a board investigation complete and a new CEO at the helm (Irwin Simon) the tide is now turning. And so it’s worth taking a closer look at Aphria now while the stock is still trading at discounted levels. “We believe Aphria is on the cusp of a major production ramp along with significant economies of scale for production and SG&A costs. Given our increased CY2020e Adj. EBITDA estimate, we are raising our 12-month target price to $24.75 per share (from $22.75)” cheers Clarus analyst Noel Atkinson. From current levels this indicates huge upside potential of 136%.He blames limited capacity and production bottlenecks for the recent disappointing earnings results, but sees brighter days ahead. “If management can guide the pending production ramp effectively, we believe there is the potential for a very substantial re-rating of the stock price from current levels. We reiterate our Buy rating” the analyst concluded. Bear in mind, APHA shares have already exploded by 550% in the last three years. So what kind of growth can we expect? Well, management recently provided targets of $500MM of Canadian cannabis revenue (annual run-rate) by the end of CY2019 and $1 billion by the end of CY2020. That expansion now looks closer than ever due to the Health Canada licensing for the crucial Part IV/V expansion (80,000 kg/year) at Aphria One that was received right after quarter-end on March 4- which means Aphria One’s full capacity should reach consumers as early as this summer. Plus the new Aphria Diamond facility should come on line soon. “We continue to believe that Aphria has developed one of the most automated and highly sophisticated cultivation facilities in the world at Aphria One, and we expect Aphria Diamond (140,000 kg/year) to have similar capabilities once it is licensed” writes Atkinson. The analyst adds: “We understand Aphria Diamond is essentially completed and awaiting Health Canada inspection to begin cultivation.”From a Smart Score perspective however Aphria receives a more muted score of six. Even though the stock scores highly with both analysts and bloggers, and has a Very Bullish news sentiment for the past week, its sentiment from investors is Positive (vs Very Positive for GWPH) with both the technicals and fundamentals in the red. See what other Top Analysts are saying about APHA. Canopy Growth Corp (NYSE:CGC) (TSE:WEED)This piece would not be complete without our third stock, Canopy Growth Corp. In just one year shares in CGC, the world’s largest cannabis stock by market cap, have doubled. Now if you look at all the analyst ratings received by CGC over the last three months, the stock shows a cautiously optimistic Moderate Buy consensus. But if we include only those ratings published by best-performing analysts, the consensus shifts to Strong Buy. In fact, CGC has received five consecutive buy ratings from top-performing analysts in the last three months. And if we look at the Canadian ticker TSE:WEED, that’s with an average analyst price target of C$83, for upside potential of just over 30%. What’s more CGC’s most recent rating comes from Martin Landry of GMP FirstEnergy. This is one of the Top 20 analysts ranked by TipRanks out of over 5,190 analysts thanks to his savvy stock picking skills. He reiterated his buy rating on CGC with a C$72 price target- having upgraded the stock from Hold to Buy in April following the news that CGC has acquired the rights to snap up organic cannabis company Acreage Holdings. As far as the Street is concerned, this deal provides CGC with a straightforward “path for the U.S. cannabis market.” Landry himself writes “This transaction should boost Acreage’s ability to consolidate the U.S. market.” That means “when Canopy officially takes ownership of Acreage, it could be much larger than currently.”The analyst has now returned from a very insightful tour of the company’s activities in British Columbia (BC), including both the company’s Aldergrove and Delta facilities.“The BC greenhouses appear to be running smoothly across all areas of production, trimming and drying,” the analyst commented- silencing rumors of dead cannabis plants that have plagued CGC since a video back in 2018 purported to show total crop failure at Aldergrove.According to Landry, “The facilities are ramping up production with only 400k sq. ft. of greenhouse currently unlicensed, the application for which has been submitted. With a number of harvests already under the belt, the ramp up focus is on increasing yields and shortening cycle time. WEED expects it can achieve an equivalent of over four harvests per year. Canopy has trimming and drying capacity to handle the full production of the BC Tweed facilities.” He believes Canopy’s BC facilities could eventually produce 300 tonnes of cannabis annually, with a production cost of $0.50/ per gram.With the stock showing such strong momentum, CGC also sports a 10/10 from TipRanks’ Smart Score, despite Very Negative sentiment from investors. See what other Top Analysts are saying about CGC. Enjoy Research Reports on the Stocks in this Article:Aphria Inc (APHA) Research ReportCanopy Growth Corp (CGC) Research ReportGW Pharmaceuticals (GWPH) Research Report
Trinseo (TSE), a global materials company and manufacturer of plastics, latex binders and synthetic rubber, announced the promotions of three key financial leaders to new roles within the organization, effective July 1, 2019. Ryan Leib has been named Vice President and Treasurer, succeeding Dave Stasse. Leib joined Trinseo in August of 2013 as Assistant Controller and was promoted to Corporate Controller in 2014.
Jefferies analyst Owen Bennett has just released a very valuable report concerning cannabis stocks. What’s interesting is that he distinguishes between the stocks that will be dominating the market in five years’ time, and the stocks where investors can find the best value right now. “On a five-year view we continue to believe that Canopy and Aurora will be the global leaders,” Bennett told investors on Friday. However, on a 12 months basis, the analyst believes two smaller Canadian producers, The Green Organic Dutchman Holdings and CannTrust Holdings, currently offer the best value for investors. Let’s take a closer look at how these four stocks measure up now: Global Leaders Canopy Growth Corp (NYSE:CGC) (TSE:WEED)Despite his confidence in Canopy’s leadership position, Bennett nonetheless has a ‘Hold’ rating on the world’s largest cannabis company. He ascribes this rating to CGC’s current high valuation. However, if it comes to picking between Canopy and Aurora, the analyst is clear which stock he prefers:“Since initiation, we have argued that Canopy, along with Aurora, is best placed to dominate on a global basis in the years ahead. The Acreage deal further supports this view, giving Canopy a route to participation in the world's largest market, and, for us, now gives Canopy a notable advantage over Aurora in terms of its long term outlook” writes Bennett. Canopy recently announced a $3.4 billion acquisition of New York-based marijuana stock Acreage Holdings. The deal would go through as soon as cannabis has been fully legalized in the US. And with this in mind, the analyst ramps up his price target from C$64 to $C77 (17% upside potential). On the back of this deal, Canopy is now the only name in the analyst’s coverage which captures US (psychoactive) cannabis exposure in the price target.He continues: “Despite Canopy's strong global positioning, and the additional value creation to potentially come via the Acreage deal, we think this is appropriately reflected in the current price, the stock up >20% since the Acreage news broke (and 80% YTD). As such we maintain our Hold rating.”However it is worth noting that the Acreage deal, although agreed by the two companies, still requires shareholder consent. And activist investor Marcato Capital is fighting the proposed takeover, arguing that the company is worth much more than the agreed $3.4 billion. Marcato owns a 2.7% stake in Acreage. “We believe Acreage’s strategic value, as one of the few multi-state operators of scale in the U.S., with leading positions in the most valuable markets merits a significant premium to any stand-alone cash-flow derived valuation,” Marcato Capital wrote in an open letter to the board. “Furthermore, we believe enterprise values of cannabis companies will skyrocket upon the relaxation of current Federal restrictions.“Accordingly, Marcato believes it is highly imprudent for Acreage to sell itself today at the proposed valuation, with so much unlocked growth and value embedded in the company.” Shareholders will vote on the deal on June 19. Overall, the marijuana grower boasts a cautiously optimistic Moderate Buy analyst consensus. That’s with an average analyst price target of $60 (22% upside potential). We can also see that under the Canadian ticker, the average analyst share price works out at C$76.88. See what other Top Analysts are saying about CGC. Aurora Cannabis Inc (NYSE:ACB) (TSE:ACB)Bennett has a more bullish Buy rating on Canadian cannabis producer Aurora. “Despite a recent good run (up 75% YTD and 29% since late February), we still believe Aurora's current valuation looks compelling relative to true global peers” explains Bennett. “We believe Aurora, along with Canopy, is best placed to dominate globally in the years ahead, yet the story is less appreciated. With infrastructure in place to strongly accelerate near-term Canadian sales as derivative products come on line, and US optionality to become more visible, we see further upside on a 12-month view. Shareholder dilution has been a risk in the past but we'd like to think this will now be more limited” he writes. Indeed, Bennett also boosted his Aurora price target from C$12 to C$14 (17% upside potential). Support for the move comes from multiple directions, including the recent $175 million transaction for premium cannabis producer Whistler, securing the maximum numbers of lots from the German domestic cultivation tender process, and appointing prominent activist consumer goods investor Nelson Peltz as a strategic advisor. Overall, we can see from TipRanks that Aurora also scores a ‘Moderate Buy’ consensus from the Street. That comes with an average analyst price target of C$13.80 (15% upside potential). See what other Top Analysts are saying about ACB. Best Value Now let’s move from two of the market’s biggest players to two smaller cannabis stocks that could make for savvy short-term investing opportunities. As Bennett writes: “We continue to see very good value at CannTrust and TGOD”: Green Organic Dutchman Holdings Ltd (TSE:TGOD) (OTCMKTS:TGODF)Green Organic is positioning itself to be the dominant player in the very attractive organic segment. Through its subsidiaries, the company produces farm grown and organic cannabis for medical use worldwide. Although a relatively new player, with an IPO in May 2018, the company has put in place all the tools to succeed.“We remain bullish on TGOD and continue to believe it is set up well to succeed” writes Bennett. “If you had to write a business plan entering the cannabis space late as they have done, then TGOD's approach would tick many of the boxes.” Namely: 1) hiring a management team with over 125 years of consumer goods experience; 2) operating in a relatively uncluttered segment (organic) that can command higher price points; and 3) access to robust capacity (enough to support the organic segment).Plus TGOD has also invested ahead in strong derivative infrastructure (i.e. announcing construction of a beverage focused division in June 2018); and invested internationally, for example with the acquisition of HemPoland in the hemp-based CBD space (distribution across 700 locations and 13 countries).However given that it only started shipping at the end of 1Q19, TGOD needs to execute into the rest of the year. “With potential issues with its Hamilton facility now resolved, we see no reason to believe that it won't. If it does then we see strong upside from here.” But- word of warning- this is a stock for the brave. Because if TGDO doesn’t pull through with strong upward momentum on sales across the quarters a sharp selloff is likely.Nonetheless Bennett is feeling confident. He has just increased his price target to C$6.50 from C$6.10 previously. Given the stock is currently trading at just $4.34 this suggests shares can surge by 50% in the coming months. Encouragingly, the Street echoes this optimistic sentiment. TGOD scores a Strong Buy Street consensus with an average analyst price target of C$7.18.See what other Top Analysts are saying about TGOD. CannTrust Holdings Inc (NYSE:CTST) (TSE:TRST) If you haven’t heard of CannTrust Holdings before, listen up. This is a pharmaceutical company that develops and produces medical cannabis for healthcare sectors in Canada. “We think [CannTrust] can be up there with the top global players, yet its multiple is a fraction of global peers” enthuses the Jefferies analyst. He has a C$13 price target on TRST stock (62% upside potential). He believes the company is a very smart, consistent operator with an excellent outlook. “It is one of the strongest medical businesses in Canada, has been performing very well in early rec, is positioned well to capitalise in derivatives (as well as pet care), and has made some shrewd moves internationally (Pharma partnership, European regional operations, US optionality)” explains the analyst. Yet despite the attractive outlook, recent performance has been notably poor (down 30% since Q4 results), with the market reacting to the soft gross margin and negative EBITDA in 4Q. According to Bennett, this is unfair, as management has simply decided to invest for long-term gain rather than short-term profitability by, for example, securing a low cost supply of cannabis for extraction into derivative products and and list on the NYSE. Moreover, in pre-releasing 1Q expectations recently the company moved to reassure investors when it said gross profit margins would return to between 42%-46% (from 35%).Bottom line: “If CannTrust delivers as we expect it to then its valuation looks very appealing at current levels.” This is reflected by the stock’s Moderate Buy analyst consensus and robust average analyst price target. On the Toronto exchange the C$14 price target suggests 75% upside potential; on NYSE the $12.38 figure is 107% above current price levels.See what other Top Analysts are saying about CTST. Enjoy Research Reports on the Stocks in this Article:Aurora Cannabis Inc (ACB) Research ReportCanopy Growth Corp (CGC) Research ReportCannTrust Holdings Inc (CTST) Research ReportGreen Organic Dutchman Holdings Ltd (TGOD) Research Report
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Trinseo (TSE), a global materials solutions provider and manufacturer of plastics, latex binders and synthetic rubber, today announced it has signed a definitive agreement with The Dow Chemical Company to acquire latex production facilities and related infrastructure at Rheinmunster, Germany. The transaction is expected to close in the second half of 2019, following European Union regulatory approval and customary closing conditions.
Insider Monkey finished processing more than 700 13F filings submitted by hedge funds and prominent investors. These filings show these funds' portfolio positions as of December 31st, 2018. What do these smart investors think about Trinseo S.A. (NYSE:TSE)? Is Trinseo S.A. (NYSE:TSE) a buy, sell, or hold? Investors who are in the know are becoming […]
Trinseo (TSE), a global materials solutions provider and manufacturer of plastics, latex binders and synthetic rubber, has named David Stasse as Executive Vice President and Chief Financial Officer of the Company, effective July 1. Stasse is currently Vice President, Treasury and Investor Relations, for Trinseo.
The cannabis market is new and volatile. So much so, that experts were not surprised when Aphria (APHA) announced revenue climbed up 240% just in the third quarter to C$73.6 million from the prior Q2 (C$21.7 million) and increased by 617% year-over-year. This, by the way, was a miss for much of Wall Street. What’s even more unbelievable is that the company spent C$106.6 million on business costs, up from what seems now to be a minor C$27.5 million in Q2. It’s clear that investing in cannabis is not going to bring great value immediately. Experts who suggest holding onto the stock do so because they’re predicting bigger gains down the line, once major companies settle into the swing of business.So how can you tell which companies are going to rise to the top? It might not necessarily be the ones that make the most noise, but here are three cannabis companies that have the attention of some of the best-rated Wall Street analysts in the TipRanks database: Aphria (APHA – Research Report)This company has been a roller coaster. In 2018 APHA was under the microscope after a short report came out suggesting it had misused investor money by opening fake facilities in Latin America and fabricating how much it cost to run them. The company didn’t do such a great job at combatting the bad press, but it eventually blew over. It wasn’t bad enough to keep 5-star rated analyst Martin Landry (Track Record & Ratings) of GMP FirstEnergy from reiterating a buy rating on the company just 7 days ago. Though Aphria’s earnings report was below Landry’s expectations, the analyst remains bullish for the future: “Aphria is testing investors’ patience with Q3FY19 short of expectations sending its shares down ~14 per cent on Monday. As the company works through its growing pains, the temporary issues which plagued Q3FY19 results should get fixed. In our view, the company has significant earnings power which is about to get more apparent,” Landry said.Landry isn’t alone. 5-star PI Financial analyst Jason Zandberg (Track Record & Ratings) says the company missed his expectations as well, but he’s not giving up just yet. He reiterates a buy rating along with 4-star analyst, Noel Atkinson from Clarus, who reiterated a buy rating just the day before. Aphria is considered a strong buy on Wall Street. Out of 6 analyst ratings who’ve reviewed the stock in the last three months, every one is bullish. With a consensus price target of $15.33, it just about doubles the current share price of $7.77. The upside is about 96%.View APHA Price Target & Analyst Ratings Detail Aurora Cannabis (TSE:ACB – Research Report)It seems to be a star in the aurora. Top-rated analyst Vivien Azer (Track Record & Ratings) has called it her top pick and reiterated a buy rating just 5 days ago. She has reason. The company is performing well, and not too long ago announced a deal to distribute its product in Germany and dabble in the CBD market, which is becoming trendier by the minute. “As Aurora continues to ramp up supply, the company is establishing an even stronger leadership position in both capacity and profitability,” Azer reported. “Even with scale opportunities ahead of them, Aurora is off to a good start, having delivered one of the highest gross margins among the leading Canadian licensed producers.”Experts in the industry predict marketing will play a major role in defining which cannabis supplier will rise to the top. Instead of choosing products based on price, consumers who are familiar with the brands will be able to make choices when they shop. Recently, the company launched a marketing campaign to find a national “Budmaster.” Similar to a bartender, a budtender is an expert cannabis representative who supports customers and offers his or her knowledge about the plant when it comes to selecting strains for consumption. After all, there are many options to choose from. Aurora Cannabis (TSE:ACB) is considered a strong buy on Wall Street. The consensus price target of C$13.30 has about 9% upside from where the stock is currently standing at C$12.16. In the last three months, 9 analysts have covered the stock with 7 offering bullish ratings and 2 who are sidelined. View TSE:ACB Price Target & Analyst Ratings Detail Canopy Growth (CGC – Research Report) And perhaps the most popular right now is Canopy Growth. This company has the highest stock price, soaring above the others at $48.11 per share as well as the largest market cap of $16.56 billion, blowing the others out of the water, as APHA has a $1.94 billion market cap and TSE:ACB C$12.28 billion. Within just the last five days, 3 top rated analysts have reviewed this company. Benchmark’s Mike Hickey (Track Record & Ratings), GMP Energy’s Martin Landry (quoted above) were on it just yesterday and 5-star analyst Jason Zandberg (quoted above), of PI Financial also reiterated his buy rating this week. Landry upgraded his position from hold to buy after Canopy solidified its position with Acreage Holdings, buying rights to acquire the company as soon as federal regulators legalize cannabis across the U.S. Acreage (ACRG) itself is highly endorsed by analysts. TipRanks data shows the company, which is already conducting business in 20 states, has three analysts rating the stock and all three are bullish. “This transaction should boost Acreage's ability to consolidate the US market," Landry reported. "Hence, when Canopy officially takes ownership of Acreage, it could be much larger than currently." Zandberg would agree that the move is a positive investment. He suggests this position will likely be mimicked by other cannabis companies trying to break into the U.S. “This essentially will give Canopy a head-start at building brand loyalty in the US market ahead of potential US Federal legalization. The two companies will continue to operate independently until a time if/when the Right is exercised,” the 5-star analyst said. “We expect other large Canadian LPs will follow this strategy as the US cannabis market rapidly develops.”12 analysts have covered Canopy Growth in the last three months, with 8 of them considering the stock a buy and 4 a hold. With a $60 consensus price target, analysts foresee a near 25% upside. View CGC Price Target & Analyst Ratings Detail Enjoy the Research Reports on the Stocks in this Article:Aphria (APHA) Research ReportAurora Cannabis (TSE:ACB) Research ReportCanopy Growth (CGC) Research Report
Trinseo (TSE), a global materials solutions provider and manufacturer of plastics, latex binders and synthetic rubber, today announced that it will host a conference call to discuss its First Quarter 2019 financial results on Friday, May 3 at 10 AM Eastern Time. Commenting on results will be Frank Bozich, President and Chief Executive Officer, Barry Niziolek, Executive Vice President and Chief Financial Officer, and David Stasse, Vice President, Treasury and Investor Relations.
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Trinseo (TSE), a global material solutions provider and manufacturer of plastics, latex binders, and synthetic rubber, announces its innovative lightweight plastic that can replace metal in semi-structural components, providing up to 30 percent weight savings compared to magnesium or aluminum. The Company will present its new long-glass-fiber-reinforced acrylonitrile butadiene styrene (ABS LGF) alloy at VDI’s Plastics in Automotive Engineering (PIAE) conference, held April 3-4, 2019 in Mannheim, Germany. In the past, car makers looking for stable and reliable materials for structural components have opted for conventional steel, magnesium, or aluminum.
Since Canada enacted national legislation in October 2018 to broadly legalize marijuana and cannabis derivatives for general use, and as the number of US states with similar laws has continued to climb, North America has become the scene of a new cannabis industry. But marijuana is more than just a social fad or a suddenly trendy business opportunity. For major investors, it’s also big money, and from the investors’ perspective, legalization has simply removed an element of risk.The risk, remains, however, as in any endeavor into new markets. In recent months, Canopy Growth Corporation (CGC – Research Report), a major player in the cannabis industry, has come under scrutiny from some of Wall Street’s best analysts. We can dive into TipRanks’ database to examine both the analysts’ reviews and the company's stock position, to get a feel for the state of the cannabis market.The company is traded on both the NYSE, under the ticker CGC, and on the Toronto Stock Exchange as WEED. Canopy’s $14 billion market cap makes it the largest cannabis company in operation, and its focus is the production and distribution of cannabis and cannabis products for recreational uses.Canopy recently received a massive boost, when brewing giant Constellation Brands (STZ) expanded a move to buy a 9.9% stake in Canopy into an eye-opening 38%, a move that included a $4 billion cash infusion into the Alberta-based marijuana company. The move came just ahead of Canada’s legalization, and Canopy’s president, Bruce Linton, has indicated that the funds will go toward international expansion and new product development.Cowen analyst Vivien Azer (Track Record & Ratings), sees Constellation’s acquisition of such a large piece of Canopy as part of a larger picture. Casting her eye on the marijuana market as a whole, she sees an early-stage industry poised for rapid take-off; she predicts that buying legal marijuana will get easier as more US jurisdictions join Canada and the ten states that already have legalization, and as companies like Canopy increase their production and supply. While she doesn’t set a firm price target, she gives the company a buy rating and takes a bullish stance toward future sales increases, as more states move to legalize or decriminalize marijuana.Writing from Canaccord Genuity, Matt Bottomley (Track Record & Ratings) agrees with Azer’s rundown on the company and gives CGC a buy rating with a price target of $52. This suggests an upside of 20% for Canopy Growth.There has been a sour note recently in the general good news around Canopy. In February, the company reported a key mistake in its Q3 earnings, saying that there had been a “spreadsheet error” in the report resulting in an $86 million correction. To make matters worse, the error was reported at 11pm - an apparent attempt to avoid the scrutiny of the daily news cycle - and the company made no comment other than to say it was a “formula error” in the spreadsheet. The lack of transparency was worse than the actual error.Analyst Martin Landry (Track Record & Ratings) of GMP FirstEnergy was not so easily appeased by the company statement. After Canopy’s admission, he lowered his price target to $49, and reduced his stance on the stock to a hold. The mistake raises serious questions, most notably, how did this get past the accountants, and can Canopy’s numbers be trusted in the future.It is important to note, however, that reservations about Canopy are not about the company’s business prospects; it is possible that Canopy can restore its reputation with more transparent future reporting.Overall, Canopy Growth has a ‘Moderate Buy’ on the analyst consensus, based on 2 buy and 2 hold ratings in the past three months. The stock is traded on both the NYSE and the TSE; it’s average price target in US dollars is $49, which is C$67 in Canadian currency. This gives CGC a 15% upside to the current share price ($43 and C$58).View CGC Price Target & Analyst Ratings Detail Enjoy the Research Report on the Stock in this Article:Canopy Growth Corporation (CGC) Research Report