Saturday , 10 June 2023

Aurora Cannabis: Analysts Forecast A 140% Gain Within 12 Months

According to 13 stock analysts, the average 12-month stock price forecast for ACB stock is $1.63, which represents an increase of 140% from yesterday’s closing price and is rated as a Hold by 11 of them with 1 Buys and 1 Strong Buy.

An original article by Lorimer Wilson, Managing Editor of, Your KEY To Making Money!

About Aurora Cannabis, Inc.

  • Aurora Cannabis Inc. produces, distributes, and sells cannabis and cannabis-derivative products in Canada and internationally.
    • It distributes wholesale medical cannabis in the European Union (EU);
    • it distributes wholesale medical cannabis in various international markets, including Australia, the Caribbean, South America, and Israel; and
    • it distributes and sells hemp-derived cannabidiol (CBD) products in the United States market.
  • In addition, Aurora:
    • cultivates and sells dried cannabis, cannabis oils, capsules, edible cannabis, and cannabis extracts, which are ingested in various ways, including smoking, vaporizing, and consumption in the form of oil, capsules, edibles, and extracts; and
    • provides dried milled strains and strain-specific cannabis oils.
  • Further, it offers patient counseling and outreach services.
  • The Company’s adult-use brand portfolio includes:
    • Aurora Drift, San Rafael ’71, Daily Special, Whistler, Being, and Greybeard, as well as CBD brands, Reliva and KG7.
  • The Company’s medical cannabis brands include:
    • MedReleaf, CanniMed, Aurora, and WMMC.

Latest (Q2) Financial Highlights

(The information below compares Q2 2023 ended December 31st, 2022 with Q1 2023 and all figures are in Canadian dollars. Go here to convert into another currency.)

  • Net Revenue: UP 25.2% to $61.7M
      • Adj. Gross Margin: DOWN to 49% from 54%
    • Medical: UP 24.6% to $39.5M
      • Adj. Gross Margin: DOWN to 61% from 67%
    • Recreational: UP 6.6% to $14.6M
      • Adj. Gross Margin: DOWN to 20% from 25%
    • Bevo Division: UP 100% to $6.6M
    • Other: $1.0M
  • SG&A (incl. R&D) Exp.: DOWN 18.4% to $26.6M
  • Adj. EBITDA: UP to $1.4M from $(7.4)M
  • Net Loss: UP 29.5% to $(67.2)M
  • Cash on Hand: DOWN 24.4% to $323.7M
  • Total Debt: DOWN 40.7% to $(193.4)M

Management Commentary

  • The CEO, Miguel Martin, saw Aurora’s financial performance in Q2 in an extremely positive and optimistic light commenting that Aurora:
    1. achieved positive Adjusted EBITDA,
    2. remained the #1 Canadian LP in global medical cannabis revenues,
    3. realized organic quarter-over-quarter revenue growth across all of our cannabis segments,
    4. had a robust balance sheet with a net cash position which put it among the strongest in the industry, and that management
    5. anticipated an even higher top-line and Adjusted EBITDA contribution in Q3 2023 versus Q2 2023.
  • The above being said, however, the actual Q2 financial data as outlined belies that optimism and the analyst forecasts for the next 12 months, as mentioned below, do not support that optimism.

Stock Performance

  • Aurora’s stock price declined 86.1% in 2022 compared with the 59.7% decline of the other 4 constituents in the munKNEE Canadian Cannabis LPs Index.
  • The stock remains weak, having declined a further 21% as of March 24th which is worse than the 13.8% decline experienced by the Index.
  • Given that its stock price has fallen below Nasdaq’s minimum listing requirement of $1.00/share, it could be forced to institute a second reverse stock split.
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