Stifel analysts updated the stock of Aurora Cannabis Inc. ACB,
did not sell on Wednesday, and said an update on the business offered Tuesday suggested it “has weathered the storm.” Analysts led by W. Andrew Carter raised their stock price target to C $ 17.50 ($ 12.89) from C $ 6.20. “We believe continued cash needs, possible capital dilution, and risk around debt covenants continue to be impediments to a more constructive approach with stocks enjoying a still robust valuation (C $ 2.5 billion business value). ) “, wrote the analysts. “But with the reiteration of the positive EBITDA F1Q21 target, Aurora’s market share gains and stronger Canadian market trends, we believe that fundamental prospects and potential to capitalize on the development of the global cannabis category are refocusing. ” Aurora announced new cost cuts, including job cuts, on Tuesday and reiterated that it expects to have a positive adjusted EIBTDA in the first quarter of fiscal year 2021. Cantor Fitzgerald reiterated its overweight rating on equities on Tuesday night. The shares were slightly higher than the previous market, but are down 48% in the year to date. Cannabis ETF THCX,
it’s down 19% over the same time period, while the S&P 500 SPX,
it has fallen 3%.