Cantor Fitzgerald raised her 12-month price target for Canadian cannabis company Aphria Inc. APHA,
HERE,
to C $ 26 from C $ 11.75 on Friday, to account for the merger with Tilray Inc. TLRY,
even though it was not impressed by the company’s quarterly figures released on Thursday. “We were disappointed with the qtr reported by APHA.TO on Jan. 14 (yes, the stock was up 20%, but we think there were other reasons), but that would be like saying President-elect Biden , VP – select Harris and newly elected Senators Warnock and Ossoff, they all had a bad hair day, “analyst Pablo Zuanic wrote in a letter to clients.” They just won their respective elections. We think the analogy applies here – it’s about what APHA + TLRY can do in a rapidly deregulating cannabis world. ”Zuanic expects Canadian players to have a first-mover advantage as recreational markets open up in overseas markets, such as Israel, Mexico, Germany and the Netherlands, as the medical markets develop and as they enter the US. ”We bring these points up because as Canopy Growth CGC,
WEEDS,
and Cronos CRON,
CRON,
are valued at 18-21x CY21 EV / revenue (based on FactSet consensus estimates), and APHA + TLRY is 13x, despite being # 1 in the Canadian market (20% share, 7pt over # 2), and having the ability from a prospective CPG partner (we think this is the most attractive asset), we would say there is value, “he wrote. Aphria shares were up 7.5% ahead of the market on Friday and were up 131% in the market. past 12 months, while the Cannabis ETF THCX,
31% gained and the S&P 500 SPX,
has won 15%.