Aurora Cannabis (ACB) became one of Cowen’s top picks. 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 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. We’ll discuss the company’s growth projections in the coming years.
In the above chart, Aurora Cannabis’ revenues for the fiscal year ending June 30 are expected to rise to 316 Canadian dollars—more than 470% growth YoY (year-over-year). The growth is expected to double in 2020 to 816 million Canadian dollars, which would be nearly 176% growth YoY from 2019.
Aurora Cannabis is expected to cross one billion dollars in sales in 2021 with estimated revenues of 1.5 billion Canadian dollars. The company’s sales growth is expected to slow down to 69% YoY.
Cannabis companies (HMMJ) including Aphria (APHA), Tilray (TLRY), and Canopy Growth (WEED) are all projected to see increased sales due to recreational cannabis in Canada. Canopy Growth is also expected to hit one billion in sales in 2021.
Next, we’ll discuss Aurora Cannabis’ profitability forecast.