SNDL Stock Forecast: Sundial Growers needs a significant rebound to remain listed on the NASDAQ

NASDAQ:SNDL has certainly seen better days as investors are likely fondly looking back at the meme stock craze of 2021. Since then, it’s been more or less a straight line down for Sundial, as shares have fallen by 46.3% in 2022 and 62.6% over the past 52-weeks. The cannabis industry in general has been one of the hardest hit sectors, and with no sign of a US Federal legalization vote passing in the Senate, it’s hard to be bullish for these stocks right now.

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Sundial was granted another extension by the NASDAQ to remain listed on the exchange. This extension is good through August 8th, which gives the company just over a month to get its stock price back over $1.00. The stock hasn’t closed over $1.00 per share since June of 2021. Sundial might need to have shareholders vote on a reverse split to remain listed. Reverse splits are often seen as a bearish sign that the company is struggling. Oddly enough, Sundial is sitting at a fairly strong financial position, and is actively looking for more acquisition targets. The company recently made a stalking horse bid for the assets of the now bankrupt Zenabis which is a subsidiary of Hexo (NASDAQ:HEXO).

Sundial stock price

One of Sundial’s domestic rivals, Canopy Growth (NASDAQ:CGC) received another downgrade from Canadian investment firm Canaccord. The price downgrade is for Canopy’s Canadian stock which traded under the ticker symbol TSE:WEED. Canaccord reiterated its Sell rating for the stock and slashed its 12-month price target from $4.50 to $3.50.

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