Article: Aphria Target - Raised to $11 CDN Bashers want your shares for cheap or the price to fall, live with it, it's what happens in forums everyday.
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Cantor Fitzgerald analyst Pablo Zuanic reiterated his Overweight rating for Aphria and raised his price target from CA$10.50 (US$7.84) to CA$11 (US$8.21).
Aphria continues to be Zuanic's top stock pick among Canadian cannabis producers. He said the company is gaining recreational market share in Canada and will likely beat consensus fourth-quarter sales estimates by roughly $2.24 million.
Zuanic is also projecting 25% sequential recreational cannabis sales growth compared to just 20% sequential sales growth for the overall recreational market.
“We think LPs like APHA, with positive EBITDA, consistent domestic rec/med market share gains, and which are sensibly building businesses overseas (MJ reg issues notwithstanding, we should remember 95% of the world’s population lives outside NA, and we still think MJ deregulation will be a global phenomenon), will outperform,” Zuanic wrote on Monday.
Unfortunately, Aphria investors should keep their expectations muted when it comes to profitability in the fourth quarter, Zuanic added. He said COVID-19 operating disruptions during the quarter likely weighed on cannabis EBITDA margins.
In addition, Zuanic is calling for cash burn to improve sequentially from C$91 million in the third quarter to just C$34 million in the fourth quarter. Zuanic is also projecting net cash of C$128 million.
In the longer-term Zuanic says Aphria should benefit from the Canadian cannabis market expanding from $1.6 billion in 2019 to $6.2 billion by 2024. Cantor is also projecting the US cannabis market will grow from $12 billion in 2019 to $31 billion by 2024.
Link to Full Article: https://finance.yahoo.com/news/cantor-fitzgerald-raises-aphria-target-162151891.html#:~:text=Cantor%20Fitzgerald%20analyst%20Pablo%20Zuanic,CA%2411%20(US%248.21).&text=Aphria%20continues%20to%20be%20Zuanic's%20top%20stock%20pick%20among%20Canadian%20cannabis%20producers.&text=Zuanic%20is%20also%20projecting%20net%20cash%20of%20C%24128%20million.