Aphria gets an upgrade
On December 29, GMP Securities upgraded Aphria (APHA) to “buy” from “under review” with a target price of 14 Canadian dollars. The company was placed under review when the stock came under pressure due to its acquisitions in Latin America. The previous target price, before GMP Securities put Aphria under review, was 25 Canadian dollars.
GMP Securities’ sentiment for Aphria was lifted by the announcement of a new independent chair of the board—Irwin S. Simon. GMP Securities had reservations about Aphria’s corporate governance. According to the former, the corporate governance will likely improve under Simon’s guidance.
To learn more, read What Citron Research Has to Say about Aphria.
The overall consensus among the eight analysts in the above chart was a “buy” for Aphria. GMP Securities’ recent rating upgrade fell in line with the consensus. However, the consensus target price for Aphria was 18.3 Canadian dollars, which was much higher than GMP Securities’ target price of 14 Canadian dollars.
Investors are more cautious than consensus analysts, which is evident in the current market price of 8.5 Canadian dollars as of December 28. Canopy Growth (WEED), Tilray (TLRY), and HEXO (HEXO) have all been battered due to pessimism in the cannabis sector (MJ).
To learn more, read Cannabis Stocks in December: Analysts’ Ratings and Target Prices.