This analyst predicts Aurora Cannabis won't achieve positive cash flow from operations until late 2021.
In a note to clients late Thursday, Piper Sandler analyst Michael Lavery downgraded the cannabis producer to the equivalent of a sell and issued a $1 target price, down from $3. Lavery cited risks related to the balance sheet and weak European Union sales as significant factors.Read: Shorting cannabis stocks was a billion-dollar idea in 2019
Aurora could opt to take “more significant austerity measures” and consider “asset sales” to improve its cash position, Lavery wrote. “Aurora built its large capacity in Canada with expectations to export a significant amount internationally, but these sales have been very slow to materialize,” Lavery wrote. “German sales have been its highest priced and highest margin products, so the suspension of sales there hurts its revenue and margin mix.”There is good news in the form of the derivative cannabis market in Canada — vaporizers, edibles and other forms of cannabis other than flower and oil became legal in December.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Kylie Jenner Just Responded To Her Australia Fire Controversy By Donating $1 Million To Relief EffortsThat Instagram story was...yikes.
Read more »
Kylie Jenner Donates $1 Million to Australian Bushfire Relief Amid CriticismKylie Jenner donated $1 million to Australian bushfire relief amid controversy over wearing fur slippers in recent social media post — details
Read more »
Kylie Jenner Donates $1 Million to Australia Fire Relief After Getting BacklashJenner had posted a controversial photo of her mink slippers.
Read more »
Chris Hemsworth Just Pledged $1 Million To Fight The Australia FiresAs more and more stars are chipping in (and asking their followers to do the same), Chris Hemsworth promised to donate $1 million to help Australia.
Read more »
NBA's Trae Young helps eliminate $1 million in past-due medical debt for struggling familiesNBA rising star point guard Trae Young has helped eliminate $1 million in past due medical debt for struggling families in Atlanta.
Read more »
Trae Young Cancels More Than $1 Million Of Medical Debt In AtlantaNBA superstar Trae Young is starting off 2020 by giving back to his new city in a HUGE way.
Read more »