Aphria (APHA) reported its earnings on January 11. Since then, the stock has risen nearly 30% as of February 12. Aphria has made a significant recovery since it came under pressure from short sellers. However, the stock was still trading at half the price of its 52-week high of 22 Canadian dollars. Let’s look at analysts’ ratings and target price for the company.
As on February 12, analysts’ consensus target price for Aphria stood at a mean of 15.7 Canadian dollars, which was nearly 11% lower from 17.8 Canadian dollars in January. The company’s median target price was 14 Canadian dollars in February compared to 16.5 Canadian dollars a month ago. Aphria closed at 12 Canadian dollars February 12. The company’s target price would leave 30.7% for upside over the mean.
In the above chart, ten analysts covered Aphria stock and had an overall “buy” recommendation for the company. Among the ten analysts, two recommended a “strong buy,” five recommended a “buy,” two recommended a “hold,” and one recommended a “sell” in February.
Investors should take analysts’ recommendations and target prices with a pinch of salt. The industry is in a stage where analysts’ estimates are unpredictable compared to mature companies.
Read Do Cannabis Stocks Look Expensive? to learn more about Aphria and its peers (MJ) like Canopy Growth (WEED), CannTrust (CNTTF), and Aurora Cannabis (ACB).