Aurora Cannabis (TSE:ACB) Cut to Strong Sell at TD Securities

Aurora Cannabis (TSE:ACB) was downgraded by analysts at TD Securities from a “strong-buy” rating to a “strong sell” rating in a report released on Tuesday, Zacks reports.

ACB has been the subject of a number of other reports. ATB Cormark Capital Markets upped their target price on Aurora Cannabis from C$5.60 to C$7.00 and gave the company a “tender” rating in a research report on Tuesday, October 6th. BMO Capital Markets upgraded Aurora Cannabis to a “hold” rating in a research report on Wednesday, August 5th. Finally, TD downgraded Aurora Cannabis from a “buy” rating to a “sell” rating and dropped their price target for the company from C$8.00 to C$7.80 in a research note on Wednesday. One equities research analyst has rated the stock with a Buy rating, one has given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, Aurora Cannabis has a consensus rating of “Reduce” and a consensus target price of C$6.60.

Aurora Cannabis Stock Up 1.4%

TSE ACB opened at C$7.31 on Tuesday. The company has a current ratio of 5.36, a quick ratio of 2.48 and a debt-to-equity ratio of 4.30. The company has a market cap of C$452.91 million, a price-to-earnings ratio of -3.77 and a beta of 0.64. The company has a 50 day moving average of C$5.76 and a 200-day moving average of C$4.95. Aurora Cannabis has a 1-year low of C$3.59 and a 1-year high of C$8.75.

Aurora Cannabis (TSE:ACB) last issued its quarterly earnings results on Wednesday, August 5th. The company reported C($0.07) earnings per share (EPS) for the quarter. Aurora Cannabis had a negative return on equity of 5.21% and a negative net margin of 9.53%. The company had revenue of C$67.55 million for the quarter. On average, equities research analysts expect that Aurora Cannabis will post -0.22 earnings per share for the current fiscal year.

Key Stories Impacting Aurora Cannabis

Here are the key news stories impacting Aurora Cannabis this week:

• Positive Sentiment: Organigram agreed to acquire Aurora in a cash-and-stock transaction valued at about C$561 million, offering C$7.80 per share—a reported 93% premium to Aurora’s unaffected share price. The bid topped Curaleaf’s competing hostile offer by 21%, supporting investor interest in the shares. Article: Organigram outbids Curaleaf with C$561M deal for Aurora Cannabis
• Neutral Sentiment: The C$7.80 offer provides a clear transaction value, but the deal remains subject to completion of the arrangement process; the provided reports do not detail the remaining conditions. Article: Organigram to Acquire Aurora and Establish a Global Cannabis Leader
• Negative Sentiment: TD cut Aurora to “sell” from “buy” and lowered its price target to C$7.80 from C$8.00. The downgrade may weigh on sentiment, even though the new target was cited as implying upside from the share price at the time of the rating. Article: TD stock recommendations

Aurora Cannabis Company Profile

Aurora is Opening the World to Cannabis ¿, serving both the medical and consumer markets across Canada, Europe, Australia and New Zealand. Headquartered in Edmonton, Alberta, Aurora is a pioneer in global cannabis, dedicated to helping people improve their lives. The Company’s adult-use brand portfolio includes Drift , San Raf , Daily Special ¿, Tasty’s ¿, Being and Greybeard . Medical cannabis brands include MedReleaf , CanniMed , Aurora and Whistler Medical Marijuana Corporation , as well as international brands, Pedanios , IndiMed ¿ and CraftPlant ¿.