Analysts rate Aurora Cannabis Inc(ACB:TSX) with a Buy rating and a $5 Target

by: Gillian Lawrence
Aurora Cannabis Inc

Analysts rate Aurora Cannabis Inc with a consensus Buy rating and a 12-month average target price of $5.01 per share.

Based on the Aurora Cannabis Inc stock forecasts from 9 analysts, the average analyst target price for Aurora Cannabis Inc is CAD 5.01 over the next 12 months. Aurora Cannabis Inc’s average analyst rating is Buy . Stock Target Advisor’s own stock analysis of Aurora Cannabis Inc is Slightly Bearish, which is based on 3 positive signals and 7 negative signals. At the last closing, Aurora Cannabis Inc’s stock price was CAD 1.98Aurora Cannabis Inc’s stock price has changed by -11.21% over the past week, +0.51% over the past month and -76.90% over the last year.

 

About Aurora Cannabis Inc (ACB:CA:TSX)

Aurora Cannabis Inc. produces, distributes, and sells cannabis and cannabis derivative products in Canada and internationally. It also engages in facility engineering and design, cannabis breeding, research, production, derivatives, product development, wholesale, and retail distribution activities. The company produces various strains of dried cannabis, cannabis oil and capsules, and topical kits for medical patients. It also sells vaporizers; consumable vaporizer accessories; and herb mills for using CanniMed herbal cannabis products, as well as grinders and vaporizer lockable containers. In addition, the company engages in the development of medical cannabis products at various stages of development, including oral, topical, edible, and inhalable products; and operation of CanvasRX, a network of cannabis counseling and outreach centers. Further, it provides patient counselling services; design and construction services; and cannabis analytical product testing services. The company’s brand portfolio includes Aurora, Aurora Drift, San Rafael ’71, Daily Special, AltaVie, MedReleaf, CanniMed, Whistler, Woodstock, and WMMC. Aurora Cannabis Inc. is headquartered in Edmonton, Canada.

Most Recent Analyst Ratings for Aurora Cannabis:

 

News:

Jefferies analyst Pablo Zuanic just stated that the German recreational cannabis market is estimated at $12.6 billion in market size. The analysts believes that Aurora and Tilray are the best 2 companies to capitalize on the the German market.

Both Aurora and Tilray currently have operations in Germany from which their channels supply the medical cannabis industry there.

Jefferies analyst Pablo Zuanic states:

“With uncertainty on the reform outlook for cannabis in the U.S., we suggest investors pay attention to Germany, as legalization there could result in significant upside for a few Nasdaq-listed cannabis stocks”.

 

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Underpriced compared to book value

The stock 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.

Superior Revenue Growth

This stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

What we don’t like:

High volatility

The total returns for this company 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.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Negative cashflow

The company had negative total cash flow 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

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

Disclaimer

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