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 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 .

Get Free Updates

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

Top Stories on

NYSE: SPY | SPDR S&P 500 News, Ratings, and Charts

How to Profit From the Rise of 11 Future Trillionaires

Today's featured article covers the top stocks: SPY, AMZN, GOOGL, FB, and BABA, revealing how you can profit from the rise of these 11 future trillionaires. Continue reading for all the important investing details.
: TLRY | Tilray, Inc. - Class 2  News, Ratings, and Charts

Tilray Closes a Facility to Reduce Costs, is the Stock a Buy?

Despite a challenging economic environment, shares of Tilray (TLRY) have rallied almost 500% in just the past two months
NYSE: IIPR | Innovative Industrial Properties, Inc.  News, Ratings, and Charts

Innovative Industrial Properties Raises Additional Capital

Despite the bearish sentiment that has persisted in the cannabis sector, Innovative Industrial Properties (IIPR) has been one of the top-performing cannabis stocks
NYSE: TEF | Telefonica SA  News, Ratings, and Charts

Top 5 Large Cap Dividend Stocks for May 28, 2020

The top winners in the large cap US dividend space for Thursday, May 28, 2020 are TEF, HP, AEE, DLR, and AEP
NASDAQ: TTD | The Trade Desk, Inc. -  News, Ratings, and Charts

Top 3 "Buy the Dip" Advertising Stocks

Recessions are cruel to advertising and marketing budgets. But they also spring back to life as the economy recovers. That is why you should look into these 3 buy the dip opportunities: TTD, BOMN and IPG. Read on for more...

Read More Stories

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

Event/DateSymbolNews DetailStart PriceEnd PriceChangePOWR Rating
Loading, please wait...
View All ACB News
Page generated in 1.4286 seconds.