Analysts rate Aurora Cannabis Inc. (ACB:TSX) with a Buy rating and a CAD 4 target

STA Research
by: STA Research
Aurora Cannabis Stock

Based on the Aurora Cannabis stock forecast from 9 analysts, the average analyst ACB stock price target is CAD 4.14 over the next 12 months. Aurora Cannabis Inc’s average analyst rating is Buy. Stock Target Advisor’s own stock analysis of ACB stock forecast is Slightly Bearish, which is based on 3 positive signals and 7 negative signals. At the last closing, Aurora Cannabis stock price was CAD 1.94Aurora Cannabis stock price has changed by -0.17% over the past week, -0.04% over the past month and -75.22% over the last year.

 

About Aurora Cannabis Inc. (ACB: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. 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. Aurora Cannabis Inc. is headquartered in Edmonton, Canada.

 

What we like:

High market capitalization:

Aurora Cannabis stock 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:

ACB stock price 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:

Aurora Cannabis 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 Aurora Cannabis stock 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 average income yield of Aurora Cannabis stock 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:

ACB stock price 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 stock forecast and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Negative cashflow:

ACB stock had negative total cash flow in the most recent four quarters.

Negative free cash flow:

ACB stock had negative total free cash flow in the most recent four quarters.

Low Earnings Growth:

Aurora Cannabis Stock has shown below median earnings growth in the previous 5 years compared to its sector.

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