Aurora Cannabis Poised for Global Legalization Wave, Analyst Views Post Q2 Earnings – Aurora Cannabis (NASDAQ:ACB)

Aurora Cannabis Inc. acb Reported its financial and operations Result for the fiscal second quarter that ended December 31 last week, disclosing that it is CA$1.4 million ($1.04 million), corresponding to prior guidance,

Canada cannabis Giant expects to remain EBITDA positive while working on reaching positive operating cash flow.

Pablo Juanic of Cantor Fitzgerald A closer look at the company’s earnings report and quarterly performance, and highlights Cash burn “remains a concern,” While “lower interest cost (debt payments) and better working capital management will help OCF trends going forward.”


Zuanic maintained an “overweight” rating on the company’s stock, while lowering its 12-month price target from $3 to $2.35 due to sectoral downratings.


The analyst pointed out that Aurora was one of the first to resize its recreational cannabis business in Canada, which has resulted in building a strong position in the global cannabis market.

“The downsizing coupled with cost reduction efforts and asset optimization has helped the company build a more sustainable moat across its domestic and international medical business,” he added.

In addition, the company is preparing a recreational sales launch in Germany, anticipated by the spring of 2025, and is looking at the possibility of a “pilot program” in the “early stages,” Zunik said.

German health minister final draft awaited That will be known publicly in the coming months, with final approval of the cannabis program and structure expected in late 2024.

“As ACB is one of only three domestic licensed producers, the company expects to play an active role in the German REC market once sales start,” continued Zuanić.

In addition to expanding internationally, the company has recently been seeking to position itself in an adjacent business line. acquisition of a controlling interest in bevo, A supplier of propagated vegetables and ornamental plants in North America.

acb price action

Aurora’s Shares traded 2.09% lower at $0.9545 per share on Thursday morning at the time of writing.

related news

Benzinga Cannabis Capital Conference

most successful cannabis business program in the world, the Benzinga Cannabis Capital Conference Returning to Miami for its 16th edition.
It is the place where deals are done, where money is raised, M&A begins, and companies meet investors and key partners. Join us April 11-12 at the Fontainebleau Miami Beach Hotel in Florida. Do not miss

reserve your tickets now, Prices will increase soon.

Photo: Courtesy yorgos natrahas But unsplash

Source link

Leave a Comment