Aphria (APHA) has been affected by recent criticism from short sellers surrounding its acquisition activities. The criticism even led to key people stepping down from the company. Read Did Short Sellers Make Aphria’s CEO and Co-Founder Step Down? Amid these concerns, the consensus price target for Aphria trended lower as a result of price target downgrades.
CIBC also initiated coverage on Aphria with a “neutral” rating last week and gave a price target of 10 Canadian dollars. CIBC gave an “outperform” rating to Cronos Group (CRON) and Canopy Growth (WEED) (CGC). Given that analysts’ views on the cannabis industry (HMMJ) remained positive, Aphria’s neutral rating indicates higher risk on the stock compared to peers.
The consensus price target for the company in January stood at 16.6 Canadian dollars, which declined from 19.3 Canadian dollars in the last month. Aphria closed at 9.4 Canadian dollars on January 22, which means that the consensus estimates a 75% upside from the current price.
The consensus analyst recommendation for Aphria is a “buy” in January. Of the ten analysts, two have a “strong buy” on the stock, five have a “buy” recommendation, two have a “hold,” and one analyst has a “sell” recommendation on the stock.
Next, we will discuss ratings for CannTrust (CNTTF).