Austin Smith
Posted by Austin Smith on Mar 7, 2019 6:00:00 AM

Strong Buy: Aurora Cannabis Shares Receives Bump from Analyst Recommendation, Tumbles with Sector after FDA Chief Resigns

 

rawpixel-804784-unsplashAurora Cannabis (NYSE: ACB) has been put between what could be considered as a rock and a hard place. The company, recently favored by Cowen & Co analysts, immediately faced decreases in value that similar cannabis corporations within the cannabis sector felt today. Cannabis stocks fell across the board after FDA Chief Dr. Scott Gottlieb announced his resignation.

Despite the news: we would recommend purchasing shares in ACB at this time.

Vivien Azer, established analyst at Cowen & Co, placed an Outperform rating on Aurora Cannabis with a price point target of $10.50 or C$14. Cowen analysts touted the company’s ability to capture 20% of the Canadian cannabis market share and its large cultivation footprint of 575,000kg.

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“While establishing 20% market share has been an early success story in Canadian adult use cannabis, the company is uniquely positioned to drive leadership in both share and profitability,” said Azer.

ACB shares peaked at $8.42 today, before it tumbled, and is currently at a 9.29% increase after market close on Monday of this week. After the Cowen announcement, the value of ACB rose more than 12% on Tuesday, and continued for another 2.59% until it hit the $8.42 peak in value on Wednesday.

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