On May 16, CannTrust (CNTTF) dropped almost 8.3% on news of further dilution of the stock. The company announced an upsizing of its previously announced offering in which the company will grant its underwriters, Canaccord Genuity and GMP Securities, the option to purchase an additional 1.5 million shares at a price of 9 Canadian dollars. The stock has delivered a loss of 3.2% YTD (year-to-date) but has performed better than industry stocks (MJ) like Aphria (APHQF) and Aurora Cannabis (ACB) (ACBFF).
The current consensus mean ratings for CannTrust on May 16 stood at 1.6 with an overall “buy” rating on the stock for the next 12 months. The mean ratings for the company changed from 1.7 a month ago in April, which indicates that analysts are more bullish on the stock month-over-month.
Out of the eight analysts surveyed by Reuters, three had a “strong buy” on the stock, while five analysts maintained a “buy” on the stock. None of the analysts had a “sell” recommendation for the company.
On May 15, Canaccord Genuity raised its price target on CannTrust to 12.5 Canadian dollars from 9.5 Canadian dollars with a “speculative buy” rating on the stock. Let’s compare this with the consensus.
Month-over-month, the mean price target for CannTrust increased from 14.4 Canadian dollars to 14.8 Canadian dollars. The stock closed at 8.9 Canadian dollars on May 16, which would lead to an upside of ~67%. The median price target also increased to 13.4 Canadian dollars from 12.5 Canadian dollars a month ago.
Next, we’ll discuss ratings and price targets for Supreme Cannabis (SPRWF).