A better than expected quarter has Clarus analyst Noel Atkinson raising his price target on Aphria (TSXV:APH).
On Wednesday, Aphria reported its Q4 and fiscal 2017 results. In the fourth quarter, the company lost $2.6-million on revenue of $5.7-million, a topline that was up 106 per cent over the same period last year.
“”We capped off another exceptional year at Aphria, with increased earnings and lowered all-in production cash costs that provides us with a considerable competitive advantage,” said CEO Vic Neufeld. “We increased our capacity expectations, continued to license the use of the Aphria know-how system to expand our proven operational expertise, made progress on our expansion into the U.S. market — all while maintaining our commitment to delivering clean and safe cannabis. The investments and progress we made in 2017 have positioned Aphria for continued profitable growth, in both the short and long term. As the medical marijuana industry rapidly expands, we believe there is a need to establish a consistent, responsible and transparent definition for licensed producers to calculate their costs to produce dried cannabis per gram. To ensure an accurate peer to peer comparison of this important metric, we are proposing the establishment of an industry-standard definition for costs that includes all costs related to the production of cannabis, including quality control costs.”
Atkinson says the quarter bested his expectations and its performance bodes well for Aphria’s future.
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