- While Aphria's stock price is down significantly in the past year, it has fared far better than its competitors.
- Overreaction to 2020 Q1 earnings provide long-term investors with attractive entry prices.
- On a P/S, P/B, EV/Sales, and EV/EBITDA basis, Aphria trades at a discount relative to its peer group yet demonstrates better financial performance, showing mispricing and opportunity for investors.
- A sensitivity analysis based on current P/S and EV/Sales multiples and forward revenue estimates show strong share price upside of 30-70%.
- While investing in the Cannabis space is risky, investors can take advantage of high volatility (thus high option premiums) and sell long-dated puts as an attractive risk-adjusted way to gain exposure to Aphria.
For further details see:
Aphria: Best Of The Bunch