After jumping more than 10% last week, APHA stock is once again in the green today, up nearly 5%.
What for, though? Well, here's what we know.
APHA Stock Maintains Momentum
Most cannabis investors recognize the name Aphria, Inc. (TSX:APHA) (NYSE:APHA). While the company has had a relatively mixed year—back in April, the company said the Green Growth Brands' takeover bid expired, which sent APHA stock down—things appear to have shifted in an overall positive direction for the company as of late.
Last week, Jefferies initiated a "buy" rating on APHA stock, sending it up around 14%, according to Market Watch. Jefferies, an investment banking company, also gave APHA stock a price target of $15 CAD. For perspective, this price target is 115% above its current trading level. “On our strategic scorecard Aphria scores highly," wrote Owen Bennett, Jefferies analyst.
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This news allowed APHA stock to lead the cannabis sector last week, and things don't look much different this week.
According to Yahoo Finance, as of 12:57 PM EDT, APHA stock is trading at $10.37; this puts the cannabis stock up 4.96%.
What the Future Holds
Aphria has had struggles over the past couple years, and instead of denying these struggles, Jefferies addressed them, saying the company is making positive turnarounds. For instance, ever since Aphria was called out for its scandal surrounding its Latin America acquisition, the company, says Jefferies, has improved its governance. Jefferies is also reportedly happy with the company's recreational cannabis segment in Canada.
Scandals or not, a good company is able to learn and grow from its mistakes, and it appears that's what Jefferies Group believes the company is doing. And if Aphria, Inc. is able to keep doing this, APHA stock may continue to have days where it leads the cannabis sector.
What do you think? Let us know in the comments below!
Featured image: Canva
