Cowen initiates coverage on Aurora Cannabis
On March 5, Cowen initiated coverage on Aurora Cannabis (ACB) with an “outperform” rating. Cowen joins an increasing number of investment firms that have shown interest in cannabis companies and initiated coverage on the Canadian stocks. Cowen also put a target price of 14 Canadian dollars on the company. Cowen’s optimism towards Aurora Cannabis comes from its position to capture the recreational cannabis market in Canada.
As of March 5, analysts’ consensus recommendation for Aurora Cannabis was a “buy.” Among the nine analysts covering the stock, three recommended a “strong buy,” four recommended a “buy,” and two recommended a “hold.” None of the analysts recommended a “sell” on the stock.
Consensus target price
On March 5, the consensus target price on Aurora Cannabis was 13.5 Canadian dollars, which was slightly lower than Cowen’s target price. However, the consensus in March was at a much higher level compared to the consensus at 11.8 Canadian dollars in February. Aurora Cannabis closed at 9.6 Canadian dollars on March 4, which would mean an upside of ~14% on the stock. On March 4, Aurora Cannabis and its peers (HMMJ) Tilray (TLRY), Canopy Growth (WEED), and Cronos Group (CRON) had a weak start.
Read Has the Legalization of Marijuana Been a Success in Canada? to learn more.