Aurora Cannabis Analysis: Company reached to 4-Year Low

Aurora Cannabis Analysis: Company reached to 4-Year Low Aurora Cannabis Inc. its shares had attributed to its lowest price in the last four years from the fourth quarter data when an MKM Partners analyst told the company "Please stop growing so much weed." Stocks on the Toronto stock exchange came up to 25%, the most significant decline in six months, and fell to the lowest level since 2016 as Canada has nearly two years left to legalize cannabis use for non-health purposes. The results showed that Tilray Inc. lowered other Canadian marijuana stocks, Tilray Inc. down as much as 9.6%, Canopy Growth Corp. losing 9% and Cronos Group Inc. falling 4.7%.  

Analysts remained to disagree with the company's optimism and felt more action was needed

  Based on the data released on Tuesday, Aurora reported net income of C $ 72.1 million and missed its target estimate of C $ 73.3 million. The loss before interest, taxes, depreciation and amortization of C $ 34.6 million is more than the predicted loss of C $ 22 million. Management said it expects to report positive EBITDA in the second quarter of the fiscal year 2021, nearly two years after initially projected. Still, Analysts remained to disagree with the company's optimism and felt more action was needed. MKM analyst Bill Kirk said that consumers are not interested in manufacturing the company. "Aurora grows things that people don't want more than they grow what they want." He also said that the company has an artificial cost structure, a capital structure tied up with heavy burdens, and an equity base that is too low to be adapted to ensure short-term profitability.  

'' The proof is needed for optimism.''

  "The pace of the turnaround is slower than expected, but the company has gone through the hardest period in terms of liquidity," said Glenn G. Mattson of Ladenburg Thalmann. He said he first awaited proof of progress in the company and the Canadian hemp market to say something more positive. '' The proof is needed for optimism.'' Eight Capital analyst Graeme Kreindler says Aurora needs to achieve its strategic goals for its return and have positive EBITDA and is looking for similar signs of progress like other analysts. Desjardins analyst John Chu kept the purchasing grade. It lowered the price target, for its target of focusing on edible products, smaller and more lucrative premium markets, was the "The proof is needed for optimism". Chu said. Aurora has excellent potential for the future but should show sales momentum after several quarter declines. Source by Yahoo Finance You may also be interested in:

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