Over the past six months, Aurora Cannabis Inc ACB shares have fallen almost 70%. On Tuesday, Cantor Fitzgerald reiterated a bullish stance on the cannabis company and updated its estimates based on the company's recent bond conversion announcement.
Cantor is updating its estimates for Aurora based on the announcement that CA$227 million of CA$230 million in convertible bonds due March 9, 2020 will convert at an average share price of CA$3.2837, resulting in the issuance of 69.1 million shares, Zuanic said in a Monday note. (See his track record here.)
Consensus projections for lower growth for Aurora vs. Cronos Group Inc CRON and Canopy Growth Corp. CGC are misguided given that the company was No. 1 in Canada's recreational and medical markets from January to September; has a "promising" lineup of Cannabis 2.0 products; and is one of three licensed producers with export momentum, the analyst said.
“We expect the sector to move up in the year ahead, and expect ACB to outperform other large Canadian LPs such as CGC, CRON and TLRY.”
Aurora shares were down 4.56% at $2.40 at the time of publication Tuesday.
Photo courtesy of Aurora.
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