Aphria Inc. (NASDAQ: APHA) shares traded higher by 9.2% on Monday ahead of the company's fiscal fourth-quarter results expected out on Wednesday.One Wall Street analyst raised his price target for the stock on Monday ahead of the big report.The AnalystCantor Fitzgerald analyst Pablo Zuanic reiterated his Overweight rating for Aphria and raised his price target from CA$10.50 (US$7.84) to CA$11 (US$8.21).The ThesisAphria continues to be Zuanic's top stock pick among Canadian cannabis producers. He said the company is gaining recreational market share in Canada and will likely beat consensus fourth-quarter sales estimates by roughly $2.24 million.Zuanic is also projecting 25% sequential recreational cannabis sales growth compared to just 20% sequential sales growth for the overall recreational market."We think LPs like APHA, with positive EBITDA, consistent domestic rec/med market share gains, and which are sensibly building businesses overseas (MJ reg issues notwithstanding, we should remember 95% of the world's population lives outside NA, and we still think MJ deregulation will be a global phenomenon), will outperform," Zuanic wrote on Monday.Unfortunately, Aphria investors should keep their expectations muted when it comes to profitability in the fourth quarter, Zuanic added. He said COVID-19 operating disruptions during the quarter likely weighed on cannabis EBITDA margins.In addition, Zuanic is calling for cash burn to improve sequentially from C$91 million in the third quarter to just C$34 million in the fourth quarter. Zuanic is also projecting net cash of C$128 million.In the longer-term Zuanic says Aphria should benefit from the Canadian cannabis market expanding from $1.6 billion in 2019 to $6.2 billion by 2024. Cantor is also projecting the US cannabis market will grow from $12 billion in 2019 to $31 billion by 2024.Benzinga's TakeGiven all the uncertainty that remains in the cannabis space in the near-term, it may be wise for cannabis bulls to take a diversified approach to investing.Consider buying a basket of Canadian legal producers like Aphria as well as US multi-state operators that have high-quality balance sheets and leading market shares.Related Links: Stifel Upgrades Aphria: 'Fundamental Performance Will Drive A Re-Rating' What A Biden Presidency Would Mean For Cannabis StocksLatest Ratings for APHA DateFirmActionFromTo Jul 2020Cantor FitzgeraldMaintainsOverweight Jul 2020StifelUpgradesHoldBuy May 2020Cantor FitzgeraldMaintainsOverweight View More Analyst Ratings for APHA View the Latest Analyst Ratings See more from Benzinga * Here's How Much Investing ,000 In The 2018 Aphria Listing Would Be Worth Today * Canopy Growth Analyst Sees Increasing Cannabis Market Share, Little Stock Upside(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
from Yahoo Finance https://ift.tt/30SIza3
Yahoo Finance’s Brian Sozzi sat down with Antonio Neri, Hewlett Packard Enterprise CEO, to discuss his recent recovery from COVID-19 and more. Sozzi shares the details on The First Trade.Alaska Air Group, Inc. (NYSE:ALK) just released its latest quarterly results and things are looking bullish. The…
Florida and California entrenched their status as epicenters of the U.S.’s coronavirus crisis, with both states hammered by rising COVID-19 cases that exceed New York, formerly the domestic leader in infections.
Amazon sells tiny homes, but some assembly may be required.We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are…
Opko Health Inc. (NASDAQ: OPK) shares are trading higher on Monday. The stock has surged recently after it was announced the company will be involved in NFL coronavirus testing.Opko Health is a diversified biotechnology company that operates pharmaceutical and diagnostic development programs. Opko's diagnostics business includes a core genetic testing operation. It has a development and commercial supply pharmaceutical company, as well as a global supply-chain operation and holding company in Ireland.Opko also owns a specialty active pharmaceutical ingredients manufacturer in Israel. The company's bio-reference testing business consists of routine testing and esoteric testing. Routine tests measure various health parameters, such as the functions of the heart, kidney, liver, thyroid, and other organs.Opko Health shares were up 7.64% at $5.70 during the time of publication on Monday. The stock has a 52-week range between $6.47 and $1.12.See more from Benzinga * Facebook Reschedules Q2 Results To July 30 * Why Global Eagle Entertainment's Stock Is Trading Higher Today * Why AMAG's Stock Is Moving Today(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Miller Value Partners recently released its Q2 2020 Investor Letter, a copy of which you can download here. The Opportunity Equity Fund posted a return of 47.02% for the quarter (net of fees), outperforming its benchmark, the S&P 500 Index which returned 20.54% in the same quarter. You should check out Miller Value Partners' top […]