What happened

Shares of Aphria (APHA) jumped 9.6% on Tuesday after an analyst lifted his price target for the popular cannabis stock. 

So what 

Stifel analyst W. Andrew Carter boosted his share-price forecast for Aphria from CA$9.80 ($7.67) to CA$15.50 ($12.17). His new target, however, is roughly 10% below the marijuana stock's current price of $13.61.

Hundred-dollar bills cut in the shape of a cannabis leaf.

Aphria's investors grew richer on Tuesday. Image source: Getty Images.

Carter argued that Aphria's second-quarter results were evidence of its strong competitive position. Still, he cautioned that its stock is "likely to remain volatile," with its price up sharply since the U.S. elections in November. Thus, Carter maintained his hold rating on Aphria's shares.

Now what

When analysts -- particularly those who have been relatively bearish on a company -- suddenly grow more bullish, investors tend to take notice. That's likely one of the reasons why Aphria rose on Tuesday, even though Carter's comments were far from a ringing endorsement of the company as an investment.

Moreover, some analysts are more optimistic about Aphria's growth prospects than Carter. Alliance Global Partners analyst Aaron Grey reiterated his buy rating and placed a CA$20 ($15.71) price target on Aphria's stock on Friday. Like Carter, Grey noted Aphria's "solid" performance in the second quarter. He also highlighted Aphria's market leadership in Canada as well as the potential for its merger with Tilray to drive growth internationally.