Michael M. Santiago/Getty Images News
Aurora Cannabis (NASDAQ:ACB) rose ~4% premarket on June 24 after Cantor Fitzgerald upgraded the stock to Overweight from Neutral with a 12-month price target of C$4.05, from C$3.90.
The SA Quant Rating on both Aurora and Tilray Brands (NASDAQ:TLRY) is Hold, which factors in measures such as Profitability and Growth. The average Wall Street Analysts’ Rating also agrees and has a Hold rating for ACB and TLRY.
YTD, Aurora’s stock has declined ~75%. The chart below shows YTD price-return performance of ACB and cannabis peers Tilray, Canopy Growth against SP500TR:
Cantor Fitzgeral said that if the U.S. does not advances on the reform front it sees Germany as by far the relevant potential catalyst and sentiment driver for cannabis stocks over the one to one and half years period.
The firm added that besides Aurora, Tilray (TLRY) is the only other public company that has license to produce in Germany — apart from the privately held German company Demecan.
The firm thinks that Tilray and Aurora should be well positioned but it was more comfortable backing Aurora over Tilray due to valuation, balance sheet strength and more exposure (Aurora is all cannabis while it is for 35% Tilray).
ACB +4.23% to $1.48 premarket June 24
Recent Comments