Canadian Cannabis Stock for Next Week: Aphria Inc.Aphria Inc. (
APHA Stock Report) is a leading Canadian marijuana company that produces and sells cannabis in the country and also internationally. The company is one of the distributors of German medicinal marijuana, besides that, it also distributes to 10 other countries. While Aphria is one of the best performing Canadian marijuana companies it has not done business in the U.S., until now. Aphria is placing a bet on U.S cannabis with its $300 million acquisition of the Sweet Water Brewing Co. LLC. Indeed, the purchase of the company gives Aphria direct access to the U.S market when it could become federally legal. In fact, the acquisition also gives both companies cross-selling opportunities and new product possibilities.
In the agreement, which is closing in December of 2020, Sweet Water Brewing will become a wholly-owned subsidiary of Aphria. Sweet Water’s products are in 27 states in the U.S and are in more than 50 countries across the world. In addition, Aphria has said Sweetwater had net revenue of $66.6 million in 2019. In detail, the company estimates that Sweet Water will account for 15% of net sales and give way to the production of infused beverages.
APHA stock hit its YTD high of $6.13 this past Friday then pulled back down to close at $5.50. Currently, analysts have given the stock a price target of $11.75 which would be a good gain from current levels. Due to the recent market rally in the marijuana sector, Aphria could be a great addition to your cannabis watchlist.