Shares of Canadian cannabis company Aphria Inc. APHA,
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rose 4.4% in premarket trading on Tuesday after Stifel raised its share price target to C $ 15.50 ($ 12.18) from C $ 9.80 and said recent results underscore the company’s outlook long-term. But analysts led by W. Andrew Carter also reiterated a rating of holding the share. While Aphria’s earnings exceeded Stifel’s estimates, they included lower Canadian adult sales, which were tempered by stronger distribution sales and higher global medical sales, analysts wrote in a note to customers. However, they said they are however, we were surprised by the superior performance of the stock – it gained 25% after earnings, while the S&P 500 SPX,
decreased by 1% – following the gains and increased post-election power. “We believe that the performance of Canadian LPs in terms of the prospect of US federal reform has limited the merit of pushing assessments to unfounded levels, but we believe that our fundamental fundamentals are solid, along with the growth prospects of the pending combination with Tilray Inc. TLRY,
are limiting factors for a more negative approach, “analysts wrote.” But we believe that the solid valuation (11X EV / FY22E net cannabis income) serves as an impediment to material overtaking, with the stock likely to remain volatile. Cantor Fitzgerald raised its 12-month stock price target for Aphria to $ 26 from $ 11.75 on Friday to consider the merger with Tilray, though it was not impressed by the company’s quarterly earnings. Aphria shares gained 136% in the last 12 months, while the THCX Cannabis ETF,
gained 29%.