Globe says Aphria maintained at "speculative buy"
Globe says Aphria maintained at "speculative buy"
2018-01-31 08:30 ET - In the News
Also In the News (C-NUU) Nuuvera Inc
The Globe and Mail reports in its Wednesday edition that Canaccord Genuity analyst Matt Bottomley says Aphria's $826-million acquisition of Nuuvera, "repositions it on the global cannabis stage." The Globe's David Leeder writes in the Eye On Equities column that on Monday, Aphria announced the cash-and-stock deal in which Nuuvera shareholders will receive $1 in cash plus 0.3546 of an Aphria share for each share they hold. Mr. Bottomley says in a note: "Nuuvera is currently in the midst of expanding and building relationships in international markets, spanning a variety of countries in Europe (as well as Africa and the Middle East), where many medical programs are in the process of being regulated. We believe this deal provides Aphria with what could now be the largest international footprint in the industry, as well as increased technological proficiency through Nuuvera's expertise in extraction, distillation and processing. ... We believe Aphria is positioning itself as a leader among Canadian licensed producers with respect to its international strategy." Mr. Bottomley boosted his share target to $26.50 from $23.50 with an unchanged "speculative buy" rating. Analysts on average target the shares at $24.97.
© 2018 Canjex Publishing Ltd. All rights reserved.