|SNDL Stock Forecast: Highlights|
|-SNDL has Outperformed NASDAQ during the last 5 days|
|-The average 12-month target for SNDL is $0.5.|
|-Positives: Recent Aquisition of Alcanna Inc.|
|-Negatives: Falling behind the market competition, unpredictable political stance|
|–Zacks Investment analyst rated this stock as a2-Buy|
SNDL Stock Forecast: Performance Chart
SNDL Stock Forecast: 2021 Review
SNDL had a volatile year in 2021 with prices ranging from $0.54 in Jan to $2.95 in Feb. The year started at $0.47 and ended at $0.57
|December 31st, 2020||$0.47|
|January 5th, 2021||$0.54|
|February 10th, 2021||$2.95|
|December 31st, 2021||$0.57|
SNDL Stock Forecast 2022
SNDL Stock Forecast: CrowdWisdom350-Insights
- Sundial confirmed that it will complete its acquisition of Alcanna Inc. on March 31, 2022. Sundial gains a significant footing in both the cannabis and alcoholic beverage marketplaces in Canada by acquiring Alcanna, Canada’s largest private liquor retail business.
- Rhode Island is going to legalize marijuana and become the 19th US State to do so.
- Considering all the movements of Government and the market, CrowdWisdom360 recommendation is to sell this stock.
Sundial Financial Results
- Net Revenue rose 78% to C$17.6m
- Gross Margin rose from a loss C$3.5 m to a gain of C$3.4m
- Diluted Earnings per share rose from a loss of C$0.09 to C$0.02
Legalization of Marijuana on Board
- Cannabis stocks like Sundial Growers Inc (SNDL), Aurora Cannabis Inc, and Canopy Growth shares moved more than 9 percent o as investors hope for the legalization of drugs in the US.
- The Republican Representative is planning to introduce a new bill to deschedule and regulate marijuana. It is much-needed catalyst for the legalization of drugs.
- Nancy Mace introduced the bill on Monday and had half dozen Republicans on board as co-sponsors already. The state reform Act not only end the federal prohibition on marijuana sales but also promises to not adding federal regulations to interfere with existing state laws regulating the marijuana industry.
- While the bill proposes to levy a federal tax on marijuana sales, but is only 3% as expected against 3.75 initially rumored and it is lower than marijuana legalization bills proposed by democrats.
SNDL Stock Forecast: Catalysts for Future Growth
- Company announced a new share repurchase program. It has a provision of repurchase of C$100 million worth of SNDL stocks by management from time to time. It plans to do so through open market purchase, privately negotiated transactions, block trades or other structured share repurchase program.
- Company can purchase a maximum of 102.8 million shares and that represents roughly 5% of company’s total outstanding shares. The share repurchase program starts this Friday and is expected to complete in one year.
- Sundial has investments in various forms like equity, debt in various cannabis companies. These investments are a regular source of cash flow. For example, Sundial generated $25.2 million revenue from investment operations in Q3 2021 and has potential of more than $50 million annually.
- Sundial has a 50:50 joint venture with SAF group. JV deals with portfolio of debt, equity instruments of investment and as portfolio of investments swells, the income is expected to increase free cash flow in the balance sheet.
- Sundial acquired Spiritleaf, largest franchise retail network in Canada. Acquisition of Alcanna for a $346 million having more than 171 stores in Canada is also worth praising.
SNDL Stock Forecast: Concluding Views
- SNDL stock closed at $2.95 on Feb 10. But SNDL can still be categorized as speculative stock and reddit traders can swing the stock the stock all over the places to make a fortune from quick trades
- However, company is making serious efforts to make a mark in the global cannabis market. With number of acquisitions lined up for the company, the cash flow is expected to increase in near future and also presence among the common people is expected to get a boost with acquisition of Alcanna.
- Also, the marijuana legalization bill in Pipeline can make the things go on roll for cannabis companies.
There is a number of good news for Sundial Growers Inc but investors should wait for more developments on legalization bill and how this newly signed partnership pans out before investing in this penny stock.
Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Stocks or Crypto Coins. Please consult a registered investment advisor to guide you on your financial decisions.
Writer: Vineet Agarwal