Shares of Aurora Cannabis (NYSE:ACB) were flying 18.5% higher as of 1:26 p.m. EDT on Tuesday. There were two likely factors behind the big gain…
Jefferies analyst Owen Bennett upgraded Aurora to hold from underperform on Monday. Also, investors could be hoping for some good news with the company’s fiscal 2020 Q4 update later today.
It’s probably best to not make too much out of Aurora’s jump today. Both of the reasons behind the gain come with asterisks.
While Jefferies’ Bennett upgraded the marijuana stock, he also slashed his price target by nearly 38% to $6.53. Aurora’s shares currently trade well above that target. In addition, Bennett noted that the company continues to face liquidity challenges and will probably have to raise more cash.
What about the potential for good news from Aurora in its Q4 update? The company already provided a sneak peek at some of its results. And they weren’t pretty. Aurora expects revenue to slip from Q3. Also, it’s taking a staggering goodwill write-off of 1.8 billion Canadian dollars ($1.35 billion).
The company also pushed back its timeline for achieving positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to fiscal 2021 Q2. Aurora previously…
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