Piper Sandler downgraded Aurora Cannabis Inc. to a sell from a hold late Thursday, citing a cash deficit of C$200 million that the investment bank says may be difficult to finance "in this capital environment," among other factors. The bank also cut its target price to $1 from $3. Aurora stock fell nearly 2% in the extended session Thursday. Piper Sandler analyst Michael Lavery wrote that the balance sheet is a notable risk and the analyst team doesn't expect cash from operation to "turn positive" until fiscal third quarter, 2021. Lavery wrote he expects that Aurora will have to refinance a $360 million debt due in August 2021. Lavery also cited weak European Union sales, and specifically a halt to sales in the German market until it receives additional authorization from regulators there related to its serialization process. Aurora is expected to sell C$100 million in cannabis derivative products in fiscal 2021. Aurora stock has fallen 66% to $1.86 in the past year, as the S&P 500 index has gained 26%. The Horizons Marijuana Life Sciences Index ETF , which tracks a basket of weed stocks, fell 49% in the past year. Read More...
Piper Sandler downgraded Aurora Cannabis Inc. to a sell from a hold late Thursday, citing a cash deficit of C$200 million that the investment bank says may be difficult to finance “in this capital environment,” among other factors. The bank also cut its target price to $1 from $3. Aurora stock fell nearly 2% in the extended session Thursday. Piper Sandler analyst Michael Lavery wrote that the balance sheet is a notable risk and the analyst team doesn’t expect cash from operation to “turn positive” until fiscal third quarter, 2021. Lavery wrote he expects that Aurora will have to refinance a $360 million debt due in August 2021. Lavery also cited weak European Union sales, and specifically a halt to sales in the German market until it receives additional authorization from regulators there related to its serialization process. Aurora is expected to sell C$100 million in cannabis derivative products in fiscal 2021. Aurora stock has fallen 66% to $1.86 in the past year, as the S&P 500 index has gained 26%. The Horizons Marijuana Life Sciences Index ETF , which tracks a basket of weed stocks, fell 49% in the past year.
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