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Jan. 15, 2020, 8:01 a.m. EST

Aphria shares up 2.4% premarket after CIBC upgrades to neutral from underperform

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By Ciara Linnane

Canadian cannabis company Aphria Inc.'s shares /zigman2/quotes/207425803/lastsale APHA +4.93% /zigman2/quotes/205566616/delayed CA:APHA +5.19% rose 2.4% in premarket trade Wednesday, after CIBC upgraded the stock to neutral from underperform and said it is more constructive on the stock now that an inevitable cut to guidance has been announced. "There will be issues to contend with, such as ongoing elevated capex spend and substantial working capital investments," analysts John Zamparo and Krishna Ruthnum wrote in a note. "But the balance sheet is relatively strong and market share gains are encouraging." The analysts raised their price target on the stock to C$7.00 ($5.36) from C$6.50. The company's revised guidance--it now expects 2020 revenue of C$575 million to C$625 million versus earlier guidance of C$650 million to C$700 million--is "much more achievable" although it may not be conservative enough, the analysts wrote. But with consensus below the new range, future guidance risk has moderated, said the note. Aphria shares have fallen 25.5% in the last 12 months, while the ETFMG Alternative Harvest ETF /zigman2/quotes/204332491/lastsale MJ +2.82% has fallen 41%. The S&P 500 /zigman2/quotes/210599714/realtime SPX +3.41% has gained 26%.

/zigman2/quotes/207425803/lastsale
US : U.S.: NYSE
$ 3.19
+0.15 +4.93%
Volume: 5.25M
April 8, 2020 6:30p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$768.90 million
Rev. per Employee
$147,410
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/zigman2/quotes/205566616/delayed
CA : Canada: Toronto
$ 4.46
+0.22 +5.19%
Volume: 2.82M
April 8, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$1.07 billion
Rev. per Employee
$190,843
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/zigman2/quotes/204332491/lastsale
US : U.S.: NYSE Arca
$ 11.31
+0.31 +2.82%
Volume: 478,492
April 8, 2020 8:00p
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/zigman2/quotes/210599714/realtime
US : S&P US
2,749.98
+90.57 +3.41%
Volume: 3.34B
April 8, 2020 5:06p
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