Aurora Cannabis Price Target Lowered to $2.50 at CIBC2022-09-16 08:24:33 AM ET (MT Newswires)
08:24 AM EDT, 09/16/2022 (MT Newswires) -- CIBC Capital Markets lowered its price target on Aurora Cannabis Inc. (ACB.TO) to $2.50 from $3.75 on Friday.
Analyst John Zamparo maintained a Neutral rating on shares of the Canadian cannabis producer ahead of its fourth quarter results on September 20.
Zamparo said Aurora's recent equity raise puts significant pressure on the stock, and his updated forward estimates include the acquisition of Bevo Farms.
"Our revenue and EBITDA forecasts for FQ4 are modestly reduced, as we expect a greater decline in ACB's Canadian medical business, as well as ongoing retrenchment in consumer sales," the analyst said in a note to clients.
"We continue to expect positive EBITDA in FQ3/23 (one quarter later than current guidance)," Zamparo said.
"We believe investors will be reluctant to own the stock until profitability is achieved and the risk of future equity issuance is reduced."