Aurora Hashish Slips on Draw back Jefferies Worth Goal

Aurora Cannabis ACB stocks were lower Friday after the Canadian cannabis company was upgraded by Jefferies analysts, but the investment firm’s price target suggests a downward move.

Analyst Owen Bennet upgraded the stock from Underperform to Hold, but also lowered his price target to $ 8.56, an 8% decrease from the stock’s previous closing price.

The company says the company’s operational weakness persists, while a $ 1 billion shelf offering from March “makes some kind of US move much more likely”.

“The company is still losing money – its cash flow from operating activities was another $ 66 million outflow last quarter, and we don’t see the company’s EBITDA positive until fiscal 2023,” Bennet said, according to Seeking Alpha.

The company sees US multistate operators as more attractive than Canadian companies because “the main argument for many Canadian names lately has been the US option. ACB is no different.”

Aurora stocks fell 0.5% to $ 7.41 on the last review.

The US legal recreational cannabis market has shown signs of strength.

Earlier this week, recreational sales in Massachusetts topped $ 2 billion just three years after the drug was legalized in the state.

According to Masslive.com, the state passed the $ 1 billion milestone on November 3, 2020. When the Covid-19 pandemic began in 2020, adult retailers were closed for two months.

And earlier this week, New York State took steps to boost its leisure industry.