APHA - Aphria Inc.
| Previous Close | 7.65 |
| Open | 7.60 |
| Bid | 0.00 x 1400 |
| Ask | 8.39 x 4000 |
| Day's Range | 7.58 - 7.92 |
| 52 Week Range | 3.75 - 16.86 |
| Volume | 6,271,834 |
| Avg. Volume | 6,767,414 |
| Market Cap | 1.977B |
| Beta (3Y Monthly) | 4.16 |
| PE Ratio (TTM) | 26.29 |
| EPS (TTM) | 0.30 |
| Earnings Date | N/A |
| Forward Dividend & Yield | N/A (N/A) |
| Ex-Dividend Date | N/A |
| 1y Target Est | N/A |
- Motley Fool•14 hours ago
Don't Waste Your Money on Penny Stocks, These 3 Stocks Are Better Buys
There's growth to be found in the market without taking a risk on penny stocks.
- MarketWatch•16 hours ago
Canopy Growth leads cannabis stocks higher after GMP upgrades to buy
Cannabis stocks were mostly higher on Monday, with Canopy Growth Corp. enjoying gains after two bullish analyst notes and CannTrust Holdings Inc. falling on news it plans to issue another $200 million in stock.
- ACCESSWIRE•17 hours ago
Investors Should Be Paying Close Attention to This Industry
CORAL GABLES, FL / ACCESSWIRE / April 22, 2019 / Investors should be paying close attention to the cannabis industry right now. Currently, recreational marijuana is now legal in 10 US states & medical marijuana is legal in 33 US States. Today we are highlighting: Canopy Growth Corporation (CGC) / (TSX:WEED.TO), Aphria Inc. (APHA), Aurora Cannabis Inc. (ACB), Leafbuyer Technologies, Inc. (LBUY).
- InvestorPlace•20 hours ago
After the Drama, Where Is Aphria Headed Now?
Even in a space with as much excitement as marijuana stocks, Aphria (NYSE:APHA) stood out for having as much drama as a cable TV show. If you're a trader, APHA stock has been a dream lately. The stock rocketed from $8 to $16 in a month last summer. It then lost as much as 75% of its value, plummeting to $4, after a series of short seller reports. Since then, the stock has bounced 150% off the lows to return to the $10 level, before earnings sent it falling once more.Source: Shutterstock After all the excitement, what's next for APHA stock? And have the company's recent moves made it investable again, or is Aphria only appropriate for the most steel-nerved traders? Fallout From the Bearish Short Seller's ReportsA few months ago, short sellers hit APHA stock with heavy fire. Bearish analysts published reports suggested that Aphria's management had engaged in unscrupulous behavior.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe short sellers suggested that Aphria was engaged in all sorts of questionable if not worse activity. The short sellers said that the company had bought phantom assets in Latin America, engaged in various double-dealing and related party transactions, and numerous other red flags.Aphria's board of directors engaged an independent special committee to investigate the accusations. The special committee found some troubling factors, but its results also exonerated the company in various ways. Arguably the most important finding was that the committee confirmed that Aphria's Latin American assets in fact exist and are progressing toward commercial activity. * 7 Tech Stocks With Too Much Risk, Not Enough Upside The committee suggested that Aphria paid near the top end of a reasonable price range for the assets, but that there is a real business there, unlike the short seller's reports which had claimed these transactions were largely imaginary. New Management for APHA StockHowever, Aphria wasn't blameless either. The board disclosed that: "it appears that certain of the non-independent directors of the Company had conflicting interests in the Acquisition that were not fully disclosed to the Board."Probably in conjunction with that, Aphria has seen major management changes. Former Aphria CEO Vic Neufeld has stepped down, as well as Co-founder Cole Cacciavillani. Neufeld in particular was implicating in several of the alleged misdeeds that the short sellers identified.In his place, Aphria has appointed an interim CEO. Irwin Simon is now in charge, at least for the time being. Simon led Hain Celestial (NASDAQ:HAIN) for more than two decades, helping that company take a dominant position in the natural and organic foods space. While it is obviously a weak spot for Aphria not to have a permanent CEO in place yet, Simon seems to have capable hands to manage the company while it recovers from the reputational blows it suffered recently. Aphria Has a Rough Earnings ReportAs William White pointed out, Aphria plummeted on April 15 after an earnings report "with losses per share of 20 Canadian cents. This is a drop from the company's earnings per share of 8 Canadian cents from the same time last year. It was also bad news for APHA stock by missing analysts' losses per share estimate of 4.5 Canadian cents for the quarter."Revenue was up, but overall sales numbers fell. The market was unimpressed, and the stock is now down around 24% since the report.Back in December, new upstart cannabis firm Green Growth Brands (OTCMKTS:GGBXF) bid to acquire Aphria. This was a highly unusual deal for several reasons. Among them, Green Growth brands itself had just gone public as the merger of several other firms. Additionally, Aphria had a significantly larger market cap than Green Growth, making it a rather odd target for a takeover offer.After the earnings tumble, Green Growth stepped away from their takeover attempt. It may be good for Aphria that another element of uncertainty is gone, but it's hardly unequivocal good news overall. APHA Stock VerdictIt's good that Aphria has cleaned house. That was a necessary and important first step in recovering the market's trust in Aphria going forward. But there's still a lot to be uncertain of.Particularly in a market where so many of the big leaders in the space have deals with credible partners, it's easy to take a pass on APHA stock. Cronos (NASDAQ:CRON) has Altria (NYSE:MO) while Canopy Growth (NYSE:CGC) has partnered with Constellation (NYSE:STZ). Meanwhile, Aurora (NYSE:ACB) doesn't have a major partner yet, but its management team hasn't given us any big reasons to doubt its credibility either.The marijuana stock sector is the Wild West right now. Many of the companies out there are going to crash and burn in coming years. Aphria's efforts to clean up their act are appreciated. But in such a risky sector, at least for the time being, it's advisable to stick to more trustworthy leaders in the cannabis space.At the time of this writing, Ian Bezek owned MO stock. You can reach him on Twitter at @irbezek. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Tech Stocks With Too Much Risk, Not Enough Upside * 7 Companies That Are Closing the CEO-Worker Wage Gap * 7 Video Game ETFs That Will Make You a Winner Compare Brokers The post After the Drama, Where Is Aphria Headed Now? appeared first on InvestorPlace.
- ACCESSWIRE•22 hours ago
Companies to Play After BofA Begins CannaCoverage- THC Therapeutics, Inc. (THCT)
HENDERSON, NV / ACCESSWIRE / April 22, 2019 / Bank of America analyst, Christopher Carey, has begun coverage of the cannabis industry with a note Wednesday naming Hexo Corp. (HEXO) as the firm's top pick ...
- CNW Group•23 hours ago
High Tide Receives $8.4 Million from First Tranche Closing of Convertible Debenture Offering
CALGARY , April 22, 2019 /CNW/ - High Tide Inc. ("High Tide" or the "Company") (HITI.CN) (HTDEF) (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 it has closed the first tranche of the sale of unsecured convertible debentures (the "Debentures") of the Company under the non-brokered private placement (the "Offering") previously announced on April 10, 2019 , with gross proceeds of $8,360,000 to date. High Tide intends to close a second and final tranche of the Offering for aggregate gross proceeds of up to $15,000,000 , which has been increased from the original amount of $10,000,000 due to strong investor demand. The outstanding principal amount under the Debentures is convertible at any time before maturity and at the option of the holder, into common shares of the Company (the "Shares") at a conversion price of $0.75 per Share.
- Market Exclusive•yesterday
Cannabis Stock News Daily Roundup April 22
Nabis, a California's cannabis distributor, has raised $4 million during their second round of financing. This follows their seed round last summer when they raised $1.25 million from Silicon Valley's elite investors, bringing the total amount raised to $5.25 million since its inception in 2017. Aphria (TSX: APHA) (NYSE: APHA) said that its German subsidiary Aphria […]The post Cannabis Stock News Daily Roundup April 22 appeared first on Market Exclusive.
- Motley Fool•2 days ago
5 Marijuana Stocks With the Most Debt: Should Investors Be Worried?
These companies have the highest debt levels in the cannabis industry. But there's more to the story.
- Motley Fool•2 days ago
Better Marijuana Stock: OrganiGram vs. Aphria
Is one of these two fast-growing pot stocks a better buy?
- Motley Fool•3 days ago
How Marijuana Legalization Affected OrganiGram and Aphria's Latest Results
These two marijuana stocks reported very different results last quarter. Plus, how Abbott's challenging Dexcom in diabetes, and what's next for Bristol-Myers following its Celgene acquisition.
- Motley Fool•3 days ago
Marijuana Stocks: Let the Writedowns Begin
There may be more to pot-stock acquisitions than meets the eye.
- PR Newswire•5 days ago
Aphria Secures Cannabis Cultivation License in Germany
LEAMINGTON, ON, April 18, 2019 /PRNewswire/ - Aphria Inc. ("Aphria" or the "Company") (TSX: APHA and NYSE: APHA) today announced that its German subsidiary Aphria Deutschland GmbH ("Aphria Germany") has secured the previously announced license for the domestic cultivation of medical cannabis from the German Federal Institute for Drugs and Medical Devices ("BfArM"), following the conclusion of a mandatory 10-day standstill period for public contracts. Aphria was granted a cultivation license for four of the nine total lots awarded by BfArM and is awaiting the completion of the tender process for the four remaining lots under review, one of which was provisionally awarded to Aphria Germany.
- Zacks•5 days ago
Likely Canopy-Acreage Deal Looks Good Enough to Boost ETF MJ
Canopy Growth will probably purchase the rights to buy Acreage Holdings to tap the growing potential of the U.S. marijuana market. This should bolster the ETF MJ.
- Motley Fool•5 days ago
Is Aphria a Buy on the Dip?
The reaction to Aphria's latest earnings call may have created a bargain opportunity.
- InvestorPlace•5 days ago
Cronos Stock Shrugs Off Negative Analyst Report
April may bring spring showers, but it still feels like winter for marijuana stock investors. This month has rained almost entirely bad news down on the cannabis sector, and investors haven't spared Cronos Group (NASDAQ:CRON) from the selling deluge.Source: Shutterstock Aphria's (NASDAQ:APHA) dour earnings report further damaged the mood, casting a wide shadow over other industry players. Companies like Tilray (NASDAQ:TLRY) and Canopy Growth (NYSE:CGC) saw their share prices wilt as people began to adjust their outlook for this earnings season downward. And there was the latest short seller target as well, with Village Farms (NASDAQ:VFF) losing as much as 15% of its value following a negative report from Citron.On Wednesday, all signs pointed to even more trouble for CRON stock in particular. That's because BofA/Merrill Lynch launched coverage of several leading marijuana stocks. It gave favorable coverage to two, while slapping CRON stock with an underperform rating. Normally, you'd expect CRON stock to slump on the news. Instead, shares dipped a bit and then rallied, actually closing the day in the green. It could be a positive sign for the company going forward that it could rebound following bad news.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Worried About Valuation for CRON StockBofA's report was hardly all that negative on Cronos as a company. They like its prospects, but the share price is a hang-up. They wrote: "We initiate coverage of Cronos, a Canada based cannabis company, with an Underperform rating and […] $13 price objective". * 10 S&P 500 Stocks to Weather the Earnings Storm They arrived at this price target in large part on an enterprise value to sales metric. They plugged in their 2020 estimate for sales and slapped a 23x multiple on said figure, which worked out to a $13 price target.As I said, BofA isn't down on the company. Their analysts added that, "Cronos is a compelling fundamental value in our view, but we are unable to get comfortable with the valuation." That's fair. The marijuana stocks are all highly valued and require some faith in the overall cannabis story to get behind.On the other hand, it's not like BofA views the whole sector as overvalued. At the same time that it panned Cronos on valuation, it gave a buy rating to Aurora Cannabis (NYSE:ACB) suggesting that it will be one of the "few truly global" companies in pot. Interestingly, even using just a 17x EV/sales multiple, they got to an $11 price target for ACB stock. BofA was even more optimistic for Canopy Growth, suggesting it is worth 24x EV/sales, which gets to a price objective of $52. So, for as fundamentally bullish as BofA may be on Cronos, they like some of its competition a whole lot more. Need A Better Earnings ReportCRON stock owners come into this earnings season with an extra dose of trepidation. That's because, arguably, Cronos delivered the single worst earnings report of all the marijuana majors during the last quarterly earnings report cycle. Given that APHA stock is now down 25% in recent days following its clunker of an earnings release, the market is saying companies need to shape up or their share prices will get leveled.Turning back to Cronos, its last report showed some flaws in the business model. Remember that Citron Research had previously blasted Cronos for having tiny distribution deals compared to rivals. Cronos' last earnings showed minimal recreational marijuana revenues. While overall revenues grew sharply, it appears that Cronos is still reliant on medicinal for the time being. Anyone who was thinking Cronos would see business results soar on Canada's legalization has been disappointed -- at least for the time being.Cronos also appears to be suffering from the same margin compression that has hit its rivals. Over the past three quarters, its gross margin has fallen from 63% to 55% and now just 45% during the most recent one. As the flood of marijuana supply comes online, they will have to demonstrate that they can keep their profit margins up. Otherwise, it could be rough days ahead for CRON stock. CRON Stock: Don't Forget About AltriaThat said, the bears risk claiming victory too early here. Sure, CRON stock has slumped from a high of $25 to $16 now. The marijuana sector as a whole is in a bit of a slump. But we're arguably still in the early innings of the marijuana stocks story playing out.Some folks have said that Canada's legalization was the top for the sector, and that it's all downhill from here. But I think we'll see a different path. Yes, a lot of marijuana companies are going to go out of business. There are way too many companies fighting over what is still a small and new market at the moment. There will be consolidation. Businesses will fail.This is great news for the sector leaders, however. As there are more mergers and acquisitions, the leaders will become more and more powerful. Cronos, along with Canopy, are set to be those industry leaders. By virtue of having the biggest backers and access to cheap and plentiful capital, Canopy and Cronos have the best chance of taking leadership in the marijuana industry. Sure, Cronos has a lot to fix based on its recent earnings reports. But with Altria's (NYSE:MO) help, there's no reason to count out CRON stock yet.At the time of this writing, Ian Bezek owned MO stock. You can reach him on Twitter at @irbezek. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 5 Dividend Stocks Perfect for Retirees * 7 Reasons the Stock Market Rally Isn't Over Yet * 10 S&P 500 Stocks to Weather the Earnings Storm Compare Brokers The post Cronos Stock Shrugs Off Negative Analyst Report appeared first on InvestorPlace.
- MarketWatch•5 days ago
Cannabis stocks mixed with Aphria down after it says it’s taking on more debt
Cannabis stocks were mixed on Wednesday, with Aphria Inc. falling after it announced plans to issue up to $300 million of convertible debt.
- PR Newswire•5 days ago
Aphria Announces Pricing of US$300 Million of Convertible Senior Notes
LEAMINGTON, ON, April 17, 2019 /PRNewswire/ - Aphria Inc. ("Aphria" or the "Company") (TSX: APHA and NYSE: APHA) today announced the pricing of US$300 million aggregate principal amount of 5.25% convertible senior notes due 2024 (the "notes") in a private placement to qualified institutional buyers pursuant to Rule 144A under the U.S. Securities Act of 1933, as amended (the "Act"), and outside the United States to non-U.S. persons in compliance with Regulation S under the Act. Aphria also granted the initial purchasers of the notes an option, exercisable within a 30-day period, to purchase up to an additional US$50 million aggregate principal amount of notes. The sale of the notes to the initial purchasers is expected to settle on April 23, 2019, subject to the satisfaction of customary closing conditions.
- InvestorPlace•6 days ago
Is CGC Stock on the Right Track?
Canopy Growth (NYSE CGC), along with most other cannabis firms, continues to operate at a loss as it builds out the infrastructure, develops its markets and develops goods that differentiate itself from the competition. Yet so far, pot stock investor seem oblivious to the risks of ongoing losses for the foreseeable future. So before investing in CGC stock, you need to pause for a moment to look at a few metrics. In doing so, investors can confirm that the company is on the right track. With that in mind, how does CGC stock fare for the speculative investor?Source: Shutterstock Operational EfficiencyCanopy Growth's yield potential in Canada is a good indicator of the company's operational efficiency. Much of the profit potential depends on government regulation and the pace at which it approves Canopy's medical products.Problems begin when investors look at the company's efficiency outside of the Canadian region, namely Europe, Australia, and South America. In those places, management does not have a clear estimate on yield over the next 1.5 to 3 years. Denmark has yet to produce supply for Canopy and is not scheduled to do so until later this year.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Stocks to Buy for Spring Season Growth This is yet another example of investors waiting for production to increase in meaningful quantities. Even if it reaches full utilization on time, investors are hardly assured that revenue from sales will exceed the costs for producing edibles and beverages. Weak Quarterly ResultsInvestors reacted negatively to Canopy Growth after it reported results on Feb 27. CGC stock had previously topped $59.25 but now trades near $42 -- and for good reason. Revenue of $83 million CAD tripled from last year, but Canopy Growth still lost 38 cents CAD a share. It also missed analyst consensus estimates. The company failed to benefit from average selling prices going up.The ongoing losses suggest that the company will have to raise prices even more to offset growing losses. If the product is demand elastic, Canopy may have a hard time selling in higher volume when prices are up.Temporarily non-producing facilities, absorption of the medical excise tax and commitments to sales and marketing and corporate infrastructure spending led to an adjusted EBITDA loss of $75.1 million. However, Canopy Growth is likely to face other one-time charges in the upcoming quarter -- so don't write this off as a one-time issue. Medical PlatformThe medical side of Canopy Growth faced some pressure in the third quarter. To counter the headwinds, Spectrum, its wholly owned subsidiary, needs more education-driven activity to grow awareness of the brand and the medical products. On Apr. 12, Spectrum Cannabis announced a partnership with an endorsement from CARP, a Canadian advocacy association for aging Canadians. It will offer tailored educational initiatives for over 320,000 CARP members.The company continues to believe that its medical opportunity globally over the next three years has a higher growth potential over the recreational market. For this to happen, Canopy therapy would need to face fewer regulatory hurdles than medical marijuana.Canopy is also running a promising study evaluating the efficacy of medical cannabis for treating insomnia. These tests are currently in Phase IIb clinical trials. It received approval from Health Canada in the second quarter of 2019. Thanks to awareness from the client base for cannabis in its role in helping to fall asleep or stay sleep, Canopy only needs to refine the ingredients and run a number of trials to gain approval from regulators. Strong Cash BalanceCanopy Growth has a few bright spots. Shareholders may point to the safety of its cash levels as one of those. By looking at Canopy's $4.9 billion in cash, most of which came from Constellation Brands, Inc. (NYSE: STZ), investors are at least assured that the company will not run out of money any time soon.Canopy's inventory build-up is also another positive development. Management intentionally increased inventory from $102 million at the end of March 2018 to $185 million at the end of December 2018. It is scaling up supply to meet strong market demands. As the legalization of the recreational market and medical customers expect more choice, the company expects sales volumes to increase. * 10 S&P 500 Stocks to Weather the Earnings Storm The Bottom Line on CGC StockThe risks in Canopy Growth is typical with any other stock in this sector: losses outpace revenue. The market is willing to wait for output to increase in 2019 but risks remain. Still, the company has lots of cash so short-term risks are low. Plus, as supply facilities are built, its efficiency will get better through scale.Disclosure: As of this writing, the author did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks to Buy for Spring Season Growth * This Is How You Beat Back a Bear Market * 7 Dental Stocks to Buy That Will Make You Smile Compare Brokers The post Is CGC Stock on the Right Track? appeared first on InvestorPlace.
- SmarterAnalyst•6 days ago
Aphria (APHA): Growing Pains in the Cannabis Industry
Legal cannabis is in its infancy, and the industry is growing rapidly – perhaps too rapidly. The April earnings report by Canadian producer Aphria (NYSE:APHA) highlights the problems – and the potential – of this emerging segment. In the words of Irwin Simon, Apria’s CEO, “There's not too many industries that are evolving and changing as quick as this one. If you come back and look at the size, CAD150 billion in size, so there's a lot of low hanging fruit in sales and opportunities for Aphria.”He has a point. Legalization in Canada was only enacted at the Federal level this past October, and the Canadian market is somewhat isolated due to conflicted legal regimes (State v Federal, medical only v recreational use, legal v illegal) in the US. The result is, that while demand is strong in Canada, supply is tight, and the cannabis companies are facing headwinds due to shortages. In addition, there are added costs involved as they set up operations for their newly legal market. More on that below; for now, we’ll take a look at Apria’s quarterly numbers.The Good NewsRevenue was way up, leaping over 600% from the year-ago quarter to reach C$73.58 million, after a quarterly sales jump of 240%. These totals, and the huge increase they represent, justify Simon’s optimism that the cannabis market can grow to C$150 billion ($113 US). They are definitely powerful indicators for investors to consider.They must also consider, however, Aphria’s net earnings. The company ended Q3 with a net operating loss of C$108.2 million, and an EPS loss of 20 cents. These figures add up to a total of C$181.78 in operating expenses, only partially offset by the strong sales, and somewhat worse than analysts had expected prior to the earnings season.The expectation had been for a 4 cent EPS loss, and revenues of C$83.45. The actual numbers represent substantial negative surprises.On a final positive note, Aphria reported C$107.5 million in cash on hand.The Bad NewsInvestors didn’t like the EPS miss, and the operation loss prompted a retreat from APHA. Shares dropped 15% after the release, from $10.10 to $8.60 in US currency. The stock is currently selling for $8.69 in the US markets and C$11.58 on the Toronto Stock Exchange.Growing Pains Adapting to the Legal MarketAs mentioned above, Canada’s cannabis industry is facing serious issues of supply. Demand is strong; that is not a problem. On the supply side, however, the cannabis production companies have to adjust their operations from a scale sufficient for a small medical supply industry to one capable of meeting demand in a recreational use market for a country of nearly 40 million. It is a daunting task.It is made more so by several factors. First, the grower companies don’t just want to increase capacity to meet Canadian demand. They also want to have some slack, excess capacity which they can activate as other markets open on the international front. Specifically, they don’t want to get caught off-guard should the US decriminalize – or even legalize – cannabis at the Federal level. There is some indication that such a policy could pass through Congress; hemp, a non-psychoactive relative of marijuana, was legalized for cultivation at the end of last year.Second, the cannabis companies want to have enough supply to meet both medical and recreational demand. Specifically, they want to relieve the shortages in the Canadian domestic market.Finally, building out to increase growing capacity entails a tremendous capital expenditure. Land needs to be cultivated, greenhouses need to be built for winter grows, extraction labs need to be expanded to meet medical needs, distribution networks need to be developed… the ancillary services required are wide and varied, and expensive.Meeting those expenses will provide a firm foundation for future growth and profits, but in the immediate present, Aphria is having trouble meeting both expansion and current demand. In Q3, Aphria sold 2,636 kilograms of cannabis products, down by almost 800 kilos for the previous quarter. Building out offers promise going forward, but alleviating the current supply crunch will take time.Aphria CFO Carl Merton alluded to all of this when he said, in the Q3 earnings call, “It is still early in terms of legalization in Canada. And as with every industry in its early stages, we are continuously learning and improving, including refining our methods for cultivation, production, packaging and distribution.”That learning process entails costs. Turning back to CEO Simon, he noted in the earnings call, “Our all-in cost per gram increased from CAD2.60 a gram to CAD3.76 a gram. This temporary increase was driven primarily by an increase in packaging costs from CAD0.97 a gram to CAD1.98 a gram in the quarter. Our increased packaging costs per gram were a result of the demand from the adult-use market and in order to comply with the packaging requirements under the Cannabis Act.”Looking forward, Simon sees the company not just expanding to meet the new scale of operations, but also adjusting to new techniques will streamline the expanded operations: “…we have reevaluated all of the total packaging used in our products... We are also working on packaging automation over the next two quarters and expect labor cost to decrease as that comes on line. Near term, we expect consistent packaging cost as we work through our existing inventory of materials, but expect to gain efficiencies from this automation and other cost savings initiatives in the mid-term.”Analyst ReactionMarket analysts remain upbeat about Aphria. Writing from GMP, Martin Landry gives the stock a solid 'buy' rating, saying, “Management remains confident in reaching its capacity goal of 255 tonnes which, using current average selling prices, translates into potential revenues from its Canadian cannabis operations in excess of $1 billion.” He sets a C$14 price target, suggesting a 20% upside for APHA.Clarus analyst Noel Atkinson is also optimistic about Aphria’s forward outlook. He says in a note after the earnings report, “We had previously assumed a run-rate of ~$865MM by the end of CY2020; we are now in line with management’s target.” Atkinson’s price target, C$22.75, indicates an upside potential of 96%, in line with the impressive room for growth in the cannabis industry.Overall, TipRanks’ data shows an overwhelmingly bullish camp backing this retail titan. The ‘Strong Buy’ stock has amassed 6 ‘buy’ ratings in the last three months, with just one analyst playing it safe with a hold rating. The 12-month average price target stands tall at $15.33, marking nearly 74% in return potential for the stock.To read more on the nitty gritty of what’s going on in the rising cannabis industry, click here. More on APHA: Marijuana Stock Aphria Went Up in Smoke, But Seaport Is Bullish Long Term More recent articles from Smarter Analyst: * All Eyes on Twitter (TWTR) Stock Ahead of Q1'19 Earnings * Here's What Analysts Are Saying About Snap Stock Ahead of Earnings * Wedbush Sets Expectations on Twitter (TWTR) Stock Ahead of Q1'19 Earnings * Cannabis Stock CannTrust (CTST) Reported Key Metrics that Give Investors Insight Into Q1'19 Results
- MarketWatch•6 days ago
UPDATE: Aphria has 'significant future capacity potential' but is still in ramp-up mode: CIBC
CIBC analysts raised their stock price target on Aphria Inc. to $12 from $10 on Tuesday and said its fiscal third-quarter earnings showed a company with "significant future capacity potential," but that it is still in ramp-up mode. "We continue to believe Aphria's cultivation and automation skills provide a solid competitive advantage, and the company's 10% market share in the recent quarter (our estimate) is notable, but at this stage, we gravitate towards other names in the sector with stronger balance sheets and more defined strategies for the medium term," analysts John Zamparo and Krishna Ruthnum wrote in a note to clients. CIBC rates the stock as neutral. Cannabis revenue of C$16 million were way below their estimate of C$28 million, said the note, and a 20% decline in adult-use pricing incurred to invest in one particular brand "warrants some questioning." The analyst also raised concerns about the Nuuvera acquisition, which has a book value of more than C$500 million and will be reviewed after year-end. "We have no idea whether this asset will be considered impaired, and applaud Aphria for last week's announcement that it has won a license to cultivate cannabis in Germany, but do wonder if the possibility of further asset write-downs exists in the future, which could act as a drag on the stock." Aphria was recently awarded a license to grow medical cannabis for the German market, winning 5 of 13 available lots, each with a minimum annual capacity of 200 kg. Aphria shares were up 1.4% in premarket trade, but have fallen 11.3% in the last 12 months, while the S&P 500 has gained 8.5%.
- Motley Fool•6 days ago
Why 1 Analyst Just Slashed Revenue Estimates for Canopy Growth -- and What It Could Mean for Other Marijuana Stocks
Canopy Growth's next quarterly update might not be nearly as rosy as its last one. And the situation could be even worse for other marijuana producers.
- ACCESSWIRE•6 days ago
Don't Overlook Energy When Investing in Cannabis
One industry that is often overlooked but could play a huge role in the cannabis industry is energy. The U.S. cannabis industry is currently eating up more than 1% of all electricity each year. The need to reduce greenhouse emissions created by the weed industry, as well as lower electric load and expenditures, makes the energy sector a clear beneficiary of a budding cannabis industry.
- MarketWatch•6 days ago
Cannabis stocks rally after 3 surveys find Americans increasingly favor legalization
Cannabis stocks rose across the board on Tuesday, as three separate surveys found Americans are increasingly in favor of legalization, demonstrating a major shift in opinion over the last two decades.
