Aphria Inc. APHA

Aphria, which is headquartered in Ontario, produces and sells medicinal and recreational cannabis. The company operates through retail and wholesale channels in Canada and internationally. Aphria is a main distributor of medical cannabis to Germany and has operations in over 10 countries outside of Canada. However, it does not have exposure to the U.S. CBD or THC markets due to the constraints of federal prohibition. It has some U.S. exposure through the acquisition of SweetWater, a craft brewer

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Aphria Inc.

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Post by CaneIsAbelon Apr 28, 2021 11:45am

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Post# 33082617

Another good article dropped seconds ago

Tilray, Canopy are buys due to potential U.S. legalization, CBD beverages - BoA

Apr. 28, 2021 11:41 AM ETTilray, Inc. (TLRY)By: Jonathan M Block, SA News Editor

Tilray (NASDAQ:TLRY) and Canopy Growth (NASDAQ:CGC) are both buys, according to Bank of America, because of their ability to enter the U.S. market should federal marijuana legalization occur and CBD beverage distribution.
BoA analyst Heather Balsky has reinstated coverage of Tilray and Canopy with price targets of, respectively, $23 and C$45.
She rates Aurora Cannabis (NYSE:ACB) as neutral and Cronos Group (NASDAQ:CRON) as underperform.
Thanks to the recent shareholder approved merger with Aphria (NASDAQ:APHA), Balsky expects "multiple expansion" thanks to the resultant gains in scale, efficiencies, and combined liquidity.
She is modeling $30M-$35M of quarterly EBITDA by 2H 2022.
Tilray is also helped by its November 2020 acquisition of SweetWater Brewing, giving it footing in the CBD beverage market and potentially THC-infused products.
Balsky believes that Tilray could become the largest cannabis company in terms of sales in the U.S. and Canada.
Should federal cannabis legalization occur, Canopy should be a major player given its financial position, management, and partnerships, Balsky notes.
Canopy is also involved with CBD-infused beverages, having just selected Southern Glazer's Wine and Spirits as its U.S. distribution partner for the products.
Tilray shares are up 2% to $18.07 and Canopy shares are up 2% to $27.44 in morning trading.