Canadian Licensed Producers Have Been On A Rollercoaster Ride When It Comes To Price Target Changes From Major Broker-Dealers

Canadian Licensed Producers Have Been On A Rollercoaster Ride When It Comes To Price Target Changes From Major Broker-Dealers

The last month has been significant for the Canadian cannabis industry and momentum has been trending higher as a result of the recent developments. Following the November general election, we have seen an improvement in sentiment, and this is a trend that our readers need to be aware of.

One of the main indicators that we monitor to better understand market sentiment is ratings and price targets from broker-dealers. During the last week, we have noticed a remarkable shift in sentiment from broker-dealers and it seems like the street has become more bullish on the Canadian cannabis sector.

This period of strength follows an extended period of declining price targets and want to highlight 5 companies that been the subject of the most significant changes from broker-dealers that cover the sector:

Aphria (APHA.TO) (APHA) and Tilray Inc. (TLRY) was the subject of several rating and price target changes. This comes after the companies announced a merger agreement and we will continue to monitor the trend.

  1. Canaccord Genuity went from Buy to Hold on Aphria (no change in price target)
  2. Stifel goes Buy to Hold on Aphria and raised the price target to $9.80 from $8.25 (CAD)
  3. Stifel went from Sell to Hold on Tilray and raised the price target to $9.20 from $5.00
  4. Alliance Global Partners raised its price target to $12 from $9 (CAD)

HEXO Corporation (HEXO.TO) (HEXO) has been a major beneficiary of the increased interest in Canadian cannabis stocks and benefited from its relationship with Molson Coors (TAP.CN). HEXO recently reported earnings that exceeded expectations and several broker-dealers became more favorable on it. In the near future, HEXO will conduct a 4 for 1 reverse split and this should impact the price targets that are assigned to HEXO. The changes include:

  1. Stifel went from Sell to Hold and raised the price target to $1.40 from $0.60 (CAD)
  2. MKM Partners raised its fair value price target to $1.30 from $1.00 (CAD)
  3. ATB Capital went from Sell to Hold and raised the price target to $1.20 from $0.85 (CAD)
  4. Canaccord Genuity raised the price target to $1.25 from $1.00 (CAD)

Aurora Cannabis (ACB.TO) (ACB) was once considered to be a darling of the Canadian cannabis industry and was always featured in the news. A lot has changed over the last year and the market seems to have changed its opinion on Aurora Cannabis. Some of the recent rating changes include:

  1. Jeffries went from Hold to Sell and lowered the price target to $4.93 from $6.90 (CAD)
  2. ATB Capital went from Sell to Hold (no change in price target)
  3. Stifel went from Hold to Sell and raised the price target to $6.50 from $3.60 (CAD)
  4. CIBC raised its price target to $15 from $12 (CAD)
  5. Cowen and Company raised its price target to $16 from $10 (CAD)
  6. Canaccord Genuity raised its price target to $11 from $8.50 (CAD)

Canopy Growth Corporation (WEED.TO) (CGC) saw a series of price target increases after the November US election and this is a trend we are following: The changes include:

  1. CIBC raised its price target to $32 from $25 (CAD)
  2. Cormark Securities raised its price target to $28.50 from $23.50 (CAD)
  3. Alliance Global Partners raised its price target to $32 from $24 (CAD)
  4. Canaccord Genuity raised its price target to $25 from $22 (CAD)
  5. Piper Sandler raised its price target to $27 from $23
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Authored By

Michael Berger

Michael Berger is Managing Partner of StoneBridge Partners LLC. SBP continues to drive market awareness for leading firms in the cannabis industry throughout the U.S. and abroad.

Published at Sun, 27 Dec 2020 20:51:49 +0000

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