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