Analyst says Aurora Cannabis (ACB) may also be dropping the ball on some valuable opportunities

: ACB | Aurora Cannabis Inc. Common Shares News, Ratings, and Charts

ACB – Aurora is making progress on its long-term goals, but the company may also be dropping the ball on some valuable opportunities.

Aurora Cannabis Inc ACB 0.36% shares bounced back Wednesday after a mixed fiscal third-quarter earnings report. One Wall Street analyst said Aurora is making progress on its long-term goals, but the company may also be dropping the ball on some valuable opportunities.

The Analyst

Bank of America analyst Christopher Carey reiterated his Buy rating and C$15 price target ($11 USD).

The Thesis

Carey said Aurora’s third-quarter results were a bit soft compared to his expectations, but investors should expect the company’s numbers to be volatile on a quarter-by-quarter basis in the near term. The most important takeaway from the quarter is Aurora reiterated its fourth-quarter guidance for 25,000 kg of cannabis ready for sale, positive EBITDA and improving margins heading into fiscal 2020.

Carey said Aurora is adding value by expanding into established products such as vapes and edibles, it might be missing out in another area.

“We see the strategy as reasonable; however, with so many companies also focused on these areas, and very few with the scale or capabilities to build advantages in untapped areas like beverages (with the exception of Canopy and Hexo), we wonder if Aurora could be ‘missing the boat’ on an area which could prove large as newer consumers wanting less pervasive, socially accepted product forms demand both psychoactive (THC-infused) and CBD beverages,” Carey wrote in a note.

Carey is bullish on Aurora, Canopy Growth Corp CGC 0.38% and Hexo Corp HEXO 1.54%, but recently named Hexo his top cannabis stock pick. Aurora is the only one of the three that hasn’t announced a major partnership with a large consumer company, an announcement that could serve as a bullish near-term catalyst for the stock.

Price Action

Aurora’s stock traded around $8.73 per share at time of publication.

 


Aurora Cannabis Inc. shares were trading at $8.87 per share on Friday morning, down $0.02 (-0.22%). Year-to-date, ACB has gained 78.83%, versus a 14.97% rise in the benchmark S&P 500 index during the same period.

ACB currently has a StockNews.com POWR Rating of C (Neutral), and is ranked #44 of 202 stocks in the Medical – Pharmaceuticals category.


This article is brought to you courtesy of Benzinga .

9 "Must Own" Growth Stocks For 2019

Get Free Updates

Join thousands of investors who get the latest news, insights and top rated picks from StockNews.com!

Top Stories on StockNews.com

NASDAQ: TSLA | Tesla, Inc. News, Ratings, and Charts

Tesla’s (TSLA) new Autopilot feature poses a “serious” safety risk for drivers, says Consumer Reports

The autopilot would sometimes cut off other vehicles or make illegal passes, the magazine said.
NYSE: LB | L Brands, Inc. News, Ratings, and Charts

L Brands Inc. (LB) reports earnings, shares surge 13% after-hours

Shares of L Brands, the owner of Victoria’s Secret and Bath & Body Works, rose nearly 11% in aftermarket trading Wednesday
NASDAQ: NTAP | NetApp, Inc. News, Ratings, and Charts

NetApp Inc. (NTAP) reports Q4 earnings, miss estimates

NetApp Inc. shares dropped more than 5% in late trading Wednesday.
: bynd | Beyond Meat, Inc. - Common stock News, Ratings, and Charts

Beyond's (BYND) stock climbs after Barclays says alternative meat market could be worth $140 billion

The market for plant-based or lab-made meat could climb to $140 billion in the next 10 years.
NASDAQ: AAPL | Apple Inc. News, Ratings, and Charts

If China bans Apple (AAPL) products, earnings could be cut 29%

Goldman rates the stock as neutral and cut its price target to $178 from $184.

Read More Stories


More Aurora Cannabis Inc. Common Shares (ACB) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All ACB News
Page generated in 1.0253 seconds.