CIBC Downgrades Aphria

This morning Aphria was downgraded to Underperform from Neutral by CIBC analyst John Zamparo lowering his price target for the shares to $6.50 from $12.

Zamparo cited concerns about “aggressive” estimates, potential asset impairment, a “leadership void and less robust supply contracts” for the downgrade.

He told investors in a research note Aphria likely captures a high-single-digit market share, and last month’s partnership with PAX Era was a “meaningful win,” the stock carries more risk than reward at current levels. The analyst believes consensus estimates need to come down to reflect slower industry growth than previously contemplated.

Aphria is already down 65% from it’s high back in September. Which isn’t unusual for cannabis stocks.

Aphria came under pressure last fall for egregious insider dealing on their Latin American transactions and Liberty Health Science acquisition. Which showed shocking photos of what Aphria purchased in Jamaica and CEO Vic Neufield purchasing founder stock in Liberty Health Science prior to having Aphria acquire the company at a much higher multiple.

This of course happening on a rough week for cannabis stocks.


Information for this briefing was found via Sedar, TheFly and Twitter. The author is short Aprhia via Puts and has no affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Four Countries Control the Fertilizer That Feeds the World | Sage Potash

$10,000 Gold Is Just A Question of Time | Florian Grummes

What Happens If Silver Finally Breaks $50? | Gary Thompson – Silver47

Recommended

Emerita Resources Expands El Cura Drill Program By 10,000 Metres As Deposit Remains Open For Expansion

ESGold Signs MOU For Tailings Project In Colombia With Grades Up To 42 g/t Gold, 280 g/t Silver

Related News

Morgan Stanley Banned Cannabis Fund, Said Hedge Fund Chief

The burgeoning legal cannabis industry in the United States faces a significant and persistent obstacle:...

Saturday, April 6, 2024, 09:58:28 AM

Republicans Want to Amend Law Prohibiting Medical Cannabis Users From Exercising Their Second Amendment Rights

Medical cannabis users in the US may soon be able to lawfully purchase and own...

Wednesday, January 18, 2023, 07:23:00 AM

Sproutly Announces JV with Moosehead

Today Sproutly Canada and Moosehead Breweries (OCC Holdings) announced they have entered into a definitive...

Tuesday, April 30, 2019, 11:44:42 AM

Matt Gaetz Wants to Stop Cannabis Testing for Military

Florida Rep. Matt Gaetz has put forward an amendment to the National Defense Authorization Act...

Thursday, July 6, 2023, 12:07:00 PM

BRIEFING: Tinley Ships First Batches of Liquor ‘Inspired’ Cannabis Beverages For Those Looking to Make ‘Mocktails’

Today Tinley Beverage Company announced they shipped their first batches of the Company’s liquor-inspired Tinley™...

Tuesday, April 23, 2019, 10:19:52 AM