The strong earnings reported by the cannabis sector have provided a powerful growth impetus for the growers’ stocks. A very conspicuous one was Organigram Holdings Inc that reported record high sales growth for the quarter, with the figure topping 400%. The figures as strong as that combined with Organigram management’s planning to double the sales prompted investors to expect that other cannabis companies have a very good upside for growth, too.
Now investors anticipate just as upbeat sales and earnings reports to be published by other cannabis growers. They believe that the sector has started to boom, and many cannabis growers will be able to earn really big money.
Tilray (NASDAQ:TLRY) stands out as underperformer, with its stock price declining on the back of the company’s two insiders announcing the sale of their stakes in the business. Tilray CEO Brendan Kennedy sold 149,916 Tilray shares for $11.1 million.
According to financial scouts, the cannabis market will continue to remain upbeat. With the strong financial and production reporting figures likely to be published, Canopy Growth (NYSE:CGC) and Tilray are likely to grow to appreciable $49-$49.5 and $78-$80, respectively, in the days to come.
And Aurora Cannabis (TO:ACB), Aphria (TO:APHA) and Cronos (NASDAQ:CRON) might climb to $7.5-$8, $8-$8.5 and $19-$19.5 in the offing, financial scouts say.
Ivan Marchena, Libertex Analyst