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

Key Points

• TD Securities cut Aurora Cannabis from “strong buy” to “strong sell,” while TD separately lowered its rating from “buy” to “sell” and reduced its price target from C$8.00 to C$7.80.
• Analyst views are mixed: MarketBeat reports one Buy, one Hold, and two Sell ratings, with an average rating of “Reduce” and a consensus target price of C$6.60.
• Organigram agreed to acquire Aurora in a cash-and-stock deal valued at about C$561 million, offering C$7.80 per share; the arrangement remains subject to completion.

Aurora Cannabis (TSE:ACB - Get Free Report) was downgraded by research analysts at TD Securities from a "strong-buy" rating to a "strong sell" rating in a research report issued to clients and investors on Tuesday, Zacks reports.

Several other research firms also recently commented on ACB. TD downgraded shares of Aurora Cannabis from a "buy" rating to a "sell" rating and decreased their price objective for the company from C$8.00 to C$7.80 in a report on Wednesday. ATB Cormark Capital Markets lifted their target price on shares of Aurora Cannabis from C$5.60 to C$7.00 and gave the stock a "tender" rating in a report on Tuesday, October 6th. Finally, BMO Capital Markets upgraded Aurora Cannabis to a "hold" rating in a report on Wednesday, August 5th. 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. Based on data from MarketBeat, the company currently has an average rating of "Reduce" and a consensus target price of C$6.60.

Aurora Cannabis Stock Performance

ACB opened at C$7.31 on Tuesday. Aurora Cannabis has a 12-month low of C$3.59 and a 12-month high of C$8.75. The stock has a market cap of C$452.91 million, a price-to-earnings ratio of -3.77 and a beta of 0.64. The business has a 50 day moving average of C$5.76 and a 200-day moving average of C$4.95. The company has a quick ratio of 2.48, a current ratio of 5.36 and a debt-to-equity ratio of 4.30.

Aurora Cannabis (TSE:ACB - Get Free Report) last posted its earnings results on Wednesday, August 5th. The company reported C($0.07) earnings per share for the quarter. Aurora Cannabis had a negative return on equity of 5.21% and a negative net margin of 9.53%. The business 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 year.

Trending Headlines about 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

About Aurora Cannabis

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 ¿.

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