Aurora Cannabis (NYSE:ACB) is one of the most popular pot stocks in the market today. Yet perhaps it shouldn’t be…
So says MKM Partners analyst Bill Kirk, who cut his rating on Aurora Cannabis from neutral to sell on Friday. He sees the weed producer’s stock price falling to $7.09. If he’s right, shareholders could suffer losses of roughly 46% from Aurora’s current price near $13.15.
Kirk is concerned about the 17% sequential decline in Aurora’s consumer cannabis net revenue in the second quarter. He also notes that Aurora failed to deliver on its promise of positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). “We don’t see a cost-cutting or growth path that gets to near-term positive EBITDA,” Kirk said.
Moreover, with the Canadian market already…
Continue reading at THE MOTLEY FOOL
