fbpx

QQQ
+ 0.35
372.63
+ 0.09%
BTC/USD
+ 580.28
43390.85
+ 1.36%
DIA
+ 0.36
347.20
+ 0.1%
SPY
+ 0.78
442.40
+ 0.18%
TLT
-1.45
149.81
-0.98%
GLD
-0.19
163.70
-0.12%

Aphria, Aurora Among Top Performers As Canadian Cannabis Sales Spike

May 26, 2020 3:02 pm
Share to Linkedin Share to Twitter Share to Facebook Share to Print License More
Aphria, Aurora Among Top Performers As Canadian Cannabis Sales Spike

Canada’s recreation cannabis sales grew by 19% in March to reach CA$181.1 million ($131.5 million), ahead of most U.S. states, according to Cantor Fitzgerald.

Analyst Pablo Zuanic said that Canada’s March sales data was significantly ahead of Cantor’s mid-single digit estimate, partly due to pantry loading, but also on account of continued Cannabis 2.0 rollouts.

Ratings And Price Targets

Cantor analyst Pablo Zuanic maintained the following ratings and price targets on cannabis stocks:

Overweight

  • Aurora Cannabis Inc. (NYSE:ACB) with a CA$27 price target. 
  • Aphria Inc. (NYSE:APHA) with a CA$9.55 price target. 
  • OrganiGram Holdings Inc (NASDAQ:OGI) with a price target of CA$5.60. 

Neutral

  • Canopy Growth Corp (NYSE:CGC) with a price target of CA$25. 
  • Tilray Inc (NASDAQ:TLRY) with a price target of $8. 

Underweight

  • Hexo Corp (NYSE:HEXO) with a price target of CA$0.72.

Cantor's Cannabis Takeaways 

Comparing Canada’s 17th month of recreational cannabis sales with Colorado's figures indicates that the country’s market may grow to CA$14 billion by the end of 2024, Zuanic said in the industry note.

So far, the best performers in the first quarter are Aphria, with 53% sales growth, and Aurora Cannabis and Tilray, with sales growth in the mid-20% range, the analyst said.

Canopy Growth is scheduled to report its March quarter results Friday.

Zuanic named Aphria and Aurora Cannabis as top picks.

Related Links: 

Canopy Growth Set To Become Cannabis Sector Leader, Says BofA

The Week In Cannabis: A Great Week For Stocks Driven By Confusion, Aurora's Rally, New Advisors To Benzinga

Courtesy photo

For the latest in financial news, exclusive stories, memes follow Benzinga on Twitter, Facebook & Instagram. For the best interviews, stock market talk & videos, subscribe to Benzinga Podcasts and our YouTube channel.


Related Articles

Will Aurora Become A Global Medical Marijuana Leader? Analyst Opines Ahead Of Q4 Earnings

Will Aurora Become A Global Medical Marijuana Leader? Analyst Opines Ahead Of Q4 Earnings

Canadian cannabis giant Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB) reported a plunge in third-quarter sales months ago, in addition to a negative adjusted EBITDA of CA$24 million ($28.3 million). read more
Organigram On Pace To Beat Tilray And Hexo In QoQ Sales Growth As Canadian Rec. Sales Reach $275.6M

Organigram On Pace To Beat Tilray And Hexo In QoQ Sales Growth As Canadian Rec. Sales Reach $275.6M

As COVID-related restrictions begin to ease across the globe, some industries are feeling the benefits more than others. When it comes to Canadian recreational cannabis sales, new Hifyre scanner data reveals a 10% improvement sequentially, noted Cantor Fitzgerald’s Pablo Zuanic in his latest industry report. read more
Tilray, Aurora, Sundial, Hexo Q2 Market And Sales Trends, Cantor Fitzgerald Projects Stronger Q3

Tilray, Aurora, Sundial, Hexo Q2 Market And Sales Trends, Cantor Fitzgerald Projects Stronger Q3

As COVID-19 safety measures begin to slowly lift and more people are getting vaccinated, many industries are beginning to blossom. For the cannabis industry, in particular, this could mean an improved third quarter (compared to the second quarter) as restrictions began to ease in June, according to Cantor Fitzgerald’s Pablo Zuanic. read more
Cantor Fitzgerald's Cannabis Conference: A Recap For Investors

Cantor Fitzgerald's Cannabis Conference: A Recap For Investors

Last week, Cantor Fitzgerald hosted CEOs from 14 Canadian legal cannabis producers as part of its Cannabis Forum. The Canadian cannabis market has many tailwinds, including post-pandemic store reopenings, understocked inventories, favorable regulatory changes and industry consolidation, the firm's analyst Pablo Zuanic said in a note.  read more