Yesterday brought the quarterly earnings update for Aurora Cannabis (NASDAQ:ACB). The Canada-based cannabis producer discussed its year so far, and its plans for the future. Despite missing analyst estimates for sales in the fiscal fourth quarter, the sentiment was that the company saw a strong year ahead as CEO Miguel Martin pointed toward a year of growth for both Aurora and ACB stock.
As he stated “As of fiscal Q4, I can safely say we’re in the best shape the company has ever been in. While there’s certainly more work to do, Aurora is on the right course to build shareholder value, particularly from these levels.”
What’s Happening With ACB Stock
Despite this rosy outlook, analysts still remain quite bearish on ACB stock, and have updated price targets accordingly, casting skepticism over the CEO’s vision of a coming year of growth.
These predictions have done much to affect Aurora’s share prices in the short term. Since markets opened this morning. ACB stock has risen by 5.3% as of this writing and shows no immediate signs of slowly down. The end of August saw a period of growth for the stock, as well most of the sector.
Just what are analysts saying about the future of this company and of ACB stock? Let’s find out.
Aurora Cannabis Price Predictions
Analyst Bill Kirk from MRK Partners says that Aurora “continues to face a struggling recreational-use business, and despite a consistent medical business, [he] sees volatility in the international market.” Following the call, Kirk upgraded his recommendations from “sell” to “neutral” and increased his fair-value price for the stock from 6 CAD to 7 CAD.
W. Andrew Carter from Stifel Nicolaus reiterated a “sell” rating and $6 price target, stating that “F4Q21 revenue was above our expectations with a stronger performance from the Consumer business (helped by Quebec) with the C$13.9 million adjusted EBITDA loss essentially matching our estimate. We continue to believe the company is outlining a pragmatic approach focusing on the most profitable growth avenues with cost savings in-hand providing a path to profitability with the current revenue base.”
Both Michael Levy of Piper Sandler and Vivien Azer of Cowen & Company reiterated “hold” positions with price targets of $7 and $6.73, respectively. Matt Bottomley of Cannacord Geunity and Matt McGinley of Needham reiterated “sell” positions. Bottomley maintained a price target of $5.15.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
