Feb 10 2021
Globe says Aphria elevated to "speculative buy"
2021-01-18 08:58 ET - In the News
The Globe and Mail reports in its Saturday edition that Canaccord analyst Matt Bottomley has upgraded Aphria to "speculative buy" from "hold." The Globe's David Leeder writes that Mr. Bottomley notes that Aphria's shares are currently trading "well below" the implied price from its proposed merger with Tilray. He further notes that Aphria on Thursday posted financial results that were better than what he had anticipated. Mr. Bottomley increased his share target by $6.50 to $17.50. Analysts on average target the shares at $11.85. Mr. Bottomley says in a note: "We note that even prior to closing its proposed deal with Tilray, APHA still boasts the highest market share with respect to its domestic recreational penetration with a national market share of more than 13 per cent. Although the quarter came in generally as expected, we note that at the exchange ratio of 0.8381, APHA currently sits at a 22-per-cent discount to the implied deal price with TLRY. With management noting during the FQ2 earnings call than it anticipates closing this transaction in late April or early May, we believe APHA could see continued near-term upside as it closes this gap should overall positive sentiment in the space remain intact."
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