Sundial Growers closes in on lowest price since November 2020

  • NASDAQ:SNDL fell by 3.40% during Wednesday’s trading session.
  • Analysts continue to assess the cannabis industry with some new upgrades and downgrades.
  • Things are still positive for Sundial despite its struggling stock.

UPDATE: SNDL stock dropped 1.8% to $0.36 on Thursday alongside a general market sell-off. All three major indices were in the reading one hour into the session, and the risky-on Nasdaq was down 0.2%. Often when Sundial Growers lacks any news flow, the SNDL share price lags. Sundial Growers stock price is now nearing the low of May 12 at $0.3421. This was the lowest low since November 2020, when shares richoted between $0.25 and $0.37.

NASDAQ:SNDL looked to be outperforming the broader markets on Wednesday, before a late-session collapse sent the stock tumbling into the closing bell. Shares of SNDL dropped by a further 3.40% and closed the trading day at $0.37. Stocks were on the retreat on Wednesday as investors weighed signs that the economy still looks to be slowing down. All eyes will be on the CPI report for the month of May which is released on Friday. On Wednesday, the Dow Jones fell by 269 basis points, the S&P 500 dropped lower by 1.08%, and the NASDAQ sank by 0.73% during the session.

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Sundial received a slight downgrade from Zack’s Investment Research firm on Wednesday, who moved the stock from a Buy rating to a Hold rating. The move comes days after an analyst at ATB Capital Markets upgraded Sundial to an Outperform rating. Sundial rival Aurora Cannabis (NASDAQ:ACB) received an upgrade from a Sell rating to a Hold rating with a trimmed price target of $2.15. Finally, BMO Capital Markets downgraded another Canadian cannabis company Canopy Growth (NASDAQ:CGC), from a Market performing rating to an Underperform rating.

Sundial stock forecast

Despite Sundial’s recent losing streak, things are still positive for the company on the business side of things. The company has a healthy balance sheet with no debt, and was one of the only meme stocks to properly take advantage of its suddenly elevated price. Sundial’s recent purchase of liquor distributor Alcanna, should begin to reflect in the company’s revenues by next quarter. Analysts in the industry still believe Sundial could make another acquisition as the Canadian cannabis sector continues to see consolidation.

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