June 19, 2019 / 10:33 AM / 5 months ago

BUZZ-Aphria: Canaccord cuts PT, revenue estimates on slower-than-expected ramp-up

** Canaccord Genuity cuts price target on Canadian cannabis producer to C$16 from C$18

** Brokerage reduces fiscal 2020 revenue estimates for APHA to C$531 mln from C$608 mln on slower-than-anticipated ramp-up

** APHA’s Q3 net revenue from cannabis produced fell 20% sequentially

** Co needs to regain investor confidence, appoint a long-term CEO and demonstrate that Q3 headwinds were temporary in nature - Canaccord

** Says although a discounted valuation is appropriate at this time, current trading multiple vs peers is largely overdone

** Of the 13 brokerages covering stock, 9 rate it “buy” or higher, 3 “hold” and 1 “sell”; median PT is C$14 which is an upside of ~53% to stock’s closing price on Tuesday

** Upto Tuesday’s closing, shares had gained ~16% YTD (Reporting by Debroop Roy in Bengaluru)

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