SNDL Stock Forecast: SNDL fails to surpass $0.46 mark in pre-market, Outlook is Sell

SNDL Stock Forecast: SNDL fails to surpass $0.46 mark in pre-market, Outlook is Sell
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SNDL Stock Forecast : Highlights
SNDL Stock Forecast: Shares of SNDL are expected to trade between $0.41 and $0.48. The overall recommendation is Sell.
-The average 12-month target for SNDL is $0.85.
-Positives: Recent Aquisition of Alcanna Inc.
-Negatives: Falling behind the market competition, unpredictable political stance
Zacks investment analysts rated this stock as a Sell

SNDL Stock Forecast: Latest Price

Share Volume
67.3 M
Forward P/E (1 Year)
N/A

SNDL Stock: Momentum Summary

Price
Lower
Share Volume
Higher
Technical Indicator
Sell

SNDL Performance Chart

5 Days
1 Month
YTD
-5.8%
-26.2%
-25.0%

SNDL Stock Forecast: Technical Analysis

Sources
Support
Resistance
Recommendation
$0.45 (S3)
$0.46 (R1)
Sell
$0.41 (S3)
$0.48 (R1)
Sell

SNDL Stock Forecast: CrowdWisdom350-Insights

  • Despite the global markets recovering for the second day in a row, SNDL continued its weekly losses on Tuesday. SNDL’s stock fell 6.59% more during the trading session, closing at $0.73.
  • Sundial confirmed on Tuesday 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.
  • Following the end of the markets on Tuesday, Sundial Growers will disclose its quarterly earnings report.
  • The Marijuana Opportunity, Reinvestment, and Expungement (MORE) Act has a second opportunity to pass the United States House of Representatives this week, which is driving the genuine excitement in cannabis stocks. The bill’s passage in the House and Senate would clear the path for federal cannabis decriminalization. A hearing on the MORE Act is set to take place today in the House Rules Committee.
  • Considering all the movements of Government and the market, CrowdWisdom360 recommendation is to sell this stock.

SNDL Stock Forecast: Latest Video

SNDL Stock Forecast and Prediction: Latest Tweets and News

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Sundial Financial Results

Fourth quarter financial results are expected to be reported on March 29th, 2022. Sundial Growers Inc declared third quarter results on 11th November and summary of the same is given below:

  • It reported net earnings of $11.3 million for the third quarter 2021 compared to $71.4 million loss in the same quarter previous year.
  • Adjusted EBITDA stands at $10.5 million for the third quarter 2021, compared to loss of $4.4 million in the third quarter 2020.Net revenue of $14.4 million from Cannabis segment increased 57% percent over second quarter 2021 and 12% over the third quarter of 2020
  • Gross margin has also improved significantly to $1.8 million from cannabis segment compared to a loss of $19.5 million in the third quarter 2020.
  • Sundial Growers Inc also acquired Alcanna Inc, Canada’s largest private liquor retailer and is operational in 171 locations, on October 7, 2021

Legalization of Marijuana on Board

  • Cannabis stocks like Sundial Growers Inc (SNDL), Aurora Cannabis Inc, Canopy Growth shares moved more than 9 percent o as investors hope for legalization of drugs in US.
  • The Republican Representative is planning to introduce a new bill to deschedule and regulate marijuana. It is much needed catalyst for 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.

Read: Tesla Stock Prediction: TSLA 

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

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