Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.
Shares of Aurora Cannabis Inc (NYSE:ACB) have declined by 30% over the past 32 days, versus a 10% pullback in its direct peer group.
The stock has come under pressure due to analyst downgrades and “misplaced market chatter,” according to Cantor Fitzgerald.
The Aurora Analyst
Pablo Zuanic maintained an Overweight rating for Aurora Cannabis with a CA$5 ($3.83) price target.
Don’t miss out on the top cannabis stories of the day. Click here to sign up for our daily insider newsletter.
The Aurora Thesis
The stock reaction following the resignation of CCO Cam Battley seems misplaced, and Aurora Cannabis could benefit from “some pruning” and appointing an outside CEO who is well-known for sound growth strategy and financial discipline, Zuanic said in a Monday note. (See his track record here.)
The market has speculated about asset writedowns, with Aurora Cannabis listing a property for sale at a price much lower than its book value, the analyst said.
Yet the asset was being sold “pretty much at book value,” and it was one that was unnecessary — and in-line with the company’s plans to scale back capital expenditures, he said.
“We see this as good and not bad news,” Zuanic said.
Referring to the market’s perception of Aurora Cannabis being at risk of breaching debt covenants, the analyst said the company seemed to be “in compliance with all covenants under the amended credit facility and term loans,” as per its Sept. 30 financials.
The recent pullback in the stock is an attractive investment opportunity, according to Cantor Fitzgerald.
Aurora Price Action
The stock was trading 2.12% higher at $1.68 at the time of publication Monday.
Related Links:
Cannabis Countdown: Top 10 Marijuana Stock News Stories Of The Week
Aurora Cannabis Downgraded By Piper Sandler, BofA
Photo courtesy of Aurora Cannabis.
Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!