Analyst comments from the G&MInside the Markets roundup of some of todays key analyst actions Aurora Cannabis Inc.s (ACB-T) move to build a 1.2-million square foot greenhouse in Medicine Hat goes a long way toward de-risking its international strategy, according to Canaccord Genuity analyst Neil Maruoka. On Tuesday, Vancouver-based Aurora unveiled plans for its high-tech Aurora Sun facility, which will be built on newly acquired 71 acres of land in the Alberta city. Aurora estimates its total capacity will increase to over 430,000 kilograms per year from its current funded capacity of 280,000 kilograms. This facility is expected to have the capacity to produce 150,000 kilograms of cannabis per year at total cash costs of less than $1.00 per gram, said Mr. Maruoka. Initial production is expected in the first half of 2019, with the entire build-out complete in the second half of next year. With synergies from the ongoing construction of Aurora Sky, we estimate total construction costs to be more than $150-million. When complete, Aurora Sun is expected to bring Auroras total production capacity to over 430,000 kilograms, positioning the company as a leader in both scale and global reach. And, while we believe that Canadian demand is likely to be saturated in the longer term, we note that significant production from Aurora Sun is earmarked for international markets. With an increased cultivation footprint, we believe that Aurora has incrementally. He added: We believe Aurora has positioned itself as a leading global supplier of cannabis. A substantial portion of the production from Aurora Sun will be earmarked for international markets, which incrementally derisks the companys international strategy, in our view. As such, we have modestly lowered the discount rate in our model for the companys international opportunities from 18 per cent to 17 per cent. Mr. Maruoka downgraded Aurora shares on March 16 based on valuation concerns. However, following a recent depreciation in price, the annualized return to his target price now sits at 30 per cent. That led the analyst to upgrade the stock to speculative buy from hold on Wednesday. Based on the Aurora Sun plans, his sum-of-the-parts valuation for Aurora increased modestly from $10.87 to $10.68 per share. That led him to raise his target for its shares to $11 from $10.50, which remains below the average target on the Street of $12.17, according to Bloomberg data. Auroras stock trades at 21.1 times our two-year forward EBITDA forecast, said Mr. Maruoka. This compares to the average for larger peers of 16.7 times, and Canopys multiple (our HOLD-rated stock amongst this group) of 23.7 times.