One of the marijuana stocks that has been the center of a lot of focus among investors over the past few sessions is the Canadian cannabis company Aphria Inc (APHA).
Aphria’s Stock Posts Biggest One Day Gain In 7-Month
Aphria’s stock started climbing on Friday after Owen Bennett, an analyst at Jeffries initiated coverage on the stock. In a note, Owen stated that the shares could double in the foreseeable future. Following that, Aphria’s stock soared 15% to close at $7.35 USD, highest one-day gain since October 31st, 2019.
Following the legalization of medical marijuana in Canada, plenty of companies have emerged and some have already gone on to become market leaders, with significant valuations.
However, Aphria offers investors a way to get into the ever-growing Canadian cannabis market with one of the cheapest stocks and there are several factors that could send the stock price even higher in the coming months.
Aphria stock took a nosedive last year due to corporate issues and accusations from short sellers that the company had paid over the market price for a particular acquisition. There had also been accusations of conflicts of interest. The company, however, conducted an independent investigation into the whole sage and found that neither did they pay over the odds for the acquisition in question nor did the executives have a conflict of interest. That being said, the entire sage has had a negative impact on the company and by extension on the stock.
Bennett believes that despite the negative perception, nothing shady had actually happened and in addition to that, the Chief Executive Officer who had been at the center of the controversy has already left the firm. That episode had left the stock beaten down over the past year but it could be a good opportunity for many investors.
Bennett states that Aphria boasts of one of the biggest capacities when it comes to extraction for pharmaceutical and vaping products. He went on to state that total sales at the company could hit $1 billion in the next four years and margins could b 24% at the same point.