Aurora Cannabis Inc. (ACB.TO) (ACB) was once considered to be a unicorn and a darling on Wall Street, having a valuation that was north of $10 billion at its peak.
Over the last two years, a lot has changed and now, Aurora Cannabis is no longer the darling that it once was.
Aurora Cannabis has been slow to execute and the market seems to have lost interest in the Canadian Licensed Producer (LP). From merger rumors to the acquisition of a US cannabidiol (CBD), the company is desperately trying to turn things around.
Wall Street analysts seem to have conflicting opinions when it comes to valuing the Canadian LP. During the last quarter, there have been several price targets changes on Aurora Cannabis from leading broker-dealers and estimates are showing a major disparity between firms.
Today, we want to highlight the recent price target changes so our readers can better understand how Wall Street firms are valuing Aurora Cannabis:
- September 9th : Stifel lowered its price target to $10.50 from $16 (CAD)
- September 8th: ATB Capital raises its price target to $11.30 from $10.40 (CAD)
- August 18th : CIBC lowered its price target to $20 from $24 (CAD)
- June 23rd: Canaccord Genuity lowered its price target to $21 from $24 (CAD)
Although there tends to be a difference in price target between broker-dealers, the size of the difference for Aurora Cannabis is eye popping. We believe that Wall Street is having a challenging time at valuing the company due the velocity of major transformations that have been announced and do not consider this to be a good thing.
The next two months are crucial for Aurora Cannabis and we will monitor how the recently appointed CEO is able to drive the business forward. Currently, we remain cautiously optimistic with the Canadian LP and will keep an eye on how the story evolves from here.