Analysts rate Sundial Growers Inc. (SNDL:NSD) with a Buy rating and a $2 target

Based on the SNDL Stock Forecast from 4 analysts, the average analyst SNDL stock price target is USD 2.44 over the next 12 months. Sundial Growers Inc’s average analyst rating is Buy. Stock Target Advisor’s own stock analysis of SNDL stock forecast is Bearish, which is based on 1 positive signal and 5 negative signals. At the last closing, Sundial Growers stock price was USD 2.79Sundial Growers stock price has changed by +0.59% over the past week, +0.29% over the past month and -56.94% over the last year.


About Sundial Growers Inc. (SNDL:NSD):

SNDL Inc. engages in the production, distribution, and sale of cannabis products in Canada. The company operates through Cannabis Operations and Retail Operations segments. It engages in the cultivation, distribution, and sale of cannabis for the adult-use markets; and private sale of recreational cannabis through corporate owned and franchised retail cannabis stores. The company also produces and distributes inhalable products, such as flower, pre-rolls, and vapes. It offers its products under the Top Leaf, Sundial Cannabis, Palmetto, and Grasslands brands. The company was formerly known as Sundial Growers Inc. and changed its name to SNDL Inc. in July 2022. SNDL Inc. was incorporated in 2006 and is headquartered in Calgary, Canada.


What we like:

Underpriced compared to book value:

SNDL stock price is trading low compared to its peers on a price to book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.


What we don’t like:

High volatility:

The total returns for SNDL stock are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Negative cashflow:

The company had negative total cash flow in the most recent four quarters.

Negative earnings:

The company had negative total earnings in the most recent four quarters.

Negative free cash flow:

The company had negative total free cash flow in the most recent four quarters.

Low Earnings Growth:

SNDL stock has shown below median earnings growth in the previous 5 years compared to its sector.