Aurora Cannabis upgraded
GMP Securities, which previously had a “hold” rating on Aurora Cannabis (ACB), upgraded the company to a “buy” on March 13. The company also gave ACB a price target of 15 Canadian dollars, up from its previous target price of 9.5 Canadian dollars.
GMP Securities joins an increasing number of investment companies that have shown confidence in Aurora Cannabis.
Why the move?
In a note, GMP Securities analyst Martin Landry stated that Aurora’s recent appointment of Nelson Peltz would be beneficial for it in dealing with consumer packaged goods companies given Peltz’s involvement with companies such as Dr Pepper Snapple Group, the Kraft Heinz Company, and PepsiCo.
The analyst’s decision to upgrade Aurora Cannabis was also influenced by Aurora’s available capacity for the production of cannabis and its international market expansion.
Cowen and Company makes Aurora a top pick
Recently, Aurora Cannabis became one of Cowen and Company’s top picks. Cowen initiated coverage on Aurora Cannabis with an “outperform” rating. It also put a target price of 14 Canadian dollars on the company. Cowen’s optimism toward Aurora Cannabis comes from its potential to capture the recreational cannabis market in Canada.
Analysts’ overall consensus recommendation on ACB is a “buy” in March. Aurora’s peers (HMMJ) CannTrust (CTST), Supreme Cannabis (SPRWF), and KushCo Holdings (KSHB) also have “buy” recommendations this month.