- The stock price of Aphria Inc (NASDAQ: APHA) has increased by 9.58%. This is why it happened.
The stock price of Aphria Inc (NASDAQ: APHA) has increased by 9.58%. One of the main reasons why the stock price increased is due to a price target increase by Stifel. Stifel had increased the stock price target to C$15.50 from C$9.80. And Stifel analyst W. Andrew Carter also reiterated a “Hold” rating for the shares.
W. Andrew Carter wrote that the company’s recent results underscores the long-term prospects of Aphria. And Aphria was able to capitalize on stronger distribution sales and higher global medical sales.
Carter acknowledged that Stifel was surprised by the outperformance of the stock though. Over the past month, the stock price of APHA increased by 87%.
“We believe the outperformance for the Canadian LPs on the prospect of U.S. federal reform has limited merit pushing valuations to unsubstantiated levels, but we believe our robust fundamental outlook alongside the growth prospects of the pending combination with Tilray are limiting factors for a more negative approach,” wrote the Stifel analysts. “But we believe the robust valuation (11X EV/FY22E net cannabis revenue) serves as an impediment for material outperformance with the stock likely to remain volatile.”
Last month, Aphria and Tilray had announced that they were combining in order to create the largest global cannabis company with pro forma revenue of C$874 million.
Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.
