Piper Sandler Downgrades Aurora Cannabis, Cuts Price Target to $1

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MarketWatch reported late Thursday afternoon, Piper Sandler downgraded Aurora Cannabis Inc. ACB, -5.38% ACB, +6.61% 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%. (MarketWatch)

Aurora Cannabis Inc (NYSE, TSX: ACB) stock is down nearly 5% after hours.

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About Aurora Cannabis

About Aurora

Headquartered in Edmonton, Alberta, Canada with funded capacity in excess of 625,000 kg per annum and sales and operations in 25 countries across five continents, Aurora is one of the world’s largest and leading cannabis companies. Aurora is vertically integrated and horizontally diversified across every key segment of the value chain, from facility engineering and design to cannabis breeding and genetics research, cannabis and hemp production, derivatives, high value-add product development, home cultivation, wholesale and retail distribution.

Highly differentiated from its peers, Aurora has established a uniquely advanced, consistent and efficient production strategy, based on purpose-built facilities that integrate leading-edge technologies across all processes, defined by extensive automation and customization, resulting in the massive scale production of high-quality consistent product. Designed to be replicable and scalable globally, our production facilities are designed to produce cannabis at significant scale, with high quality, industry-leading yields, and low-per gram production costs. Each of Aurora’s facilities is built to meet European Union Good Manufacturing Practices (“EU GMP”) standards. Certification has been granted to Aurora’s first production facility in Mountain View County, the MedReleaf Markham facility, and its wholly owned European medical cannabis distributor Aurora Deutschland. All Aurora facilities are designed and built to the EU GMP standard.

In addition to the Company’s rapid organic growth and strong execution on strategic M&A, which to date includes 17 wholly owned subsidiary companies – MedReleaf, CanvasRX, Peloton Pharmaceutical, Aurora Deutschland, H2 Biopharma, BC Northern Lights, Larssen Greenhouses, CanniMed Therapeutics, Anandia, HotHouse Consulting, MED Colombia, Agropro, Borela, ICC Labs, Whistler, Chemi Pharmaceutical, and Hempco – Aurora is distinguished by its reputation as a partner and employer of choice in the global cannabis sector, having invested in and established strategic partnerships with a range of leading innovators, including: Radient Technologies Inc. (TSXV: RTI), Cann Group Ltd. (ASX: CAN), Micron Waste Technologies Inc. (CSE: MWM), Choom Holdings Inc. (CSE: CHOO), CTT Pharmaceuticals (OTCC: CTTH), Alcanna Inc. (TSX: CLIQ), High Tide Inc. (CSE: HITI), EnWave Corporation (TSXV: ENW), Capcium Inc. (private), Evio Beauty Group (private). Aurora’s Common Shares trade on the TSX and NYSE under the symbol “ACB”, and is a constituent of the S&P/TSX Composite Index.

Source: MarketWatch

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