Why is Aurora Cannabis’ stock soaring today?

Aurora Cannabis Inc. led a rally in cannabis stocks Wednesday after the company said it’s hiring hedge-fund manager Nelson Peltz as an adviser with the aim of sealing new cooperation agreements and expanding globally.

The stock soared 12.5% in early trade. Peltz, the founder of Trian Fund Management L.P., is a well known activist investor who has run campaigns to shake up management and operations at a range of companies, including…

Procter & Gamble Co. PG, +0.89% the former DuPont and Dow Chemical, newly merged as DowDuPont Inc. DWDP, +1.18% and General Electric Co. GE, +0.77% He is chairman of fast-food chain Wendy’s Co. WEN, +0.27%  and currently sits on the boards of P&G, food services giant Sysco Corp. SYY, +0.63% and The Madison Square Garden Co. MSG, -0.61%

Jefferies analyst Owen Bennett said the news bolsters his view of Aurora as well positioned to become a global leader in the sector.

“Some investor pushback on Aurora’s investment case is they have spent large amounts on numerous assets across the value chain, with perhaps little thought to which are best suited,” Bennett wrote in a note to clients. “Peltz should…

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