Ladenburg Thalmann reiterated its buy rating on shares of Aurora Cannabis Inc. on Monday after the Canadian cannabis company posted better-than-expected earnings last week. Analyst Glenn Mattson lowered his stock price target to $18 from a split-adjusted $36. Aurora conducted a 12-for-1 reverse stock split last week, after a delisting threat from the New York Stock Exchange as the stock was trading below $1. Mattson said the company's $75.5 million fiscal third-quarter revenue was ahead of his $67.6 million forecast, while consumer cannabis revenue of $41.5 million beat his forecast of $36.6 million. Aurora has made strides in its reorganization plan announced in February, the analyst wrote, with the goal of reducing sales, general and admin costs and R&D costs to a run rate of $40 million to $45 million as it exits the fiscal fourth quarter. "We think ACB can become a solid cash flow generator simply from the Canadian operations and, with a strong market position in Canada, the company can create significant value from here based on this one market," Mattson wrote. We do think that it will look to expand into the U.S. but not until federal legality is more clear." Shares rose 59%, but remain down 31% in the year to date, while the ETFMG Alternative Harvest ETF has fallen 24% and the S&P 500 has fallen 9%. Read More...
Ladenburg Thalmann reiterated its buy rating on shares of Aurora Cannabis Inc. on Monday after the Canadian cannabis company posted better-than-expected earnings last week. Analyst Glenn Mattson lowered his stock price target to $18 from a split-adjusted $36. Aurora conducted a 12-for-1 reverse stock split last week, after a delisting threat from the New York Stock Exchange as the stock was trading below $1. Mattson said the company’s $75.5 million fiscal third-quarter revenue was ahead of his $67.6 million forecast, while consumer cannabis revenue of $41.5 million beat his forecast of $36.6 million. Aurora has made strides in its reorganization plan announced in February, the analyst wrote, with the goal of reducing sales, general and admin costs and R&D costs to a run rate of $40 million to $45 million as it exits the fiscal fourth quarter. “We think ACB can become a solid cash flow generator simply from the Canadian operations and, with a strong market position in Canada, the company can create significant value from here based on this one market,” Mattson wrote. We do think that it will look to expand into the U.S. but not until federal legality is more clear.” Shares rose 59%, but remain down 31% in the year to date, while the ETFMG Alternative Harvest ETF has fallen 24% and the S&P 500 has fallen 9%.
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