|Bid||14.55 x 0|
|Ask||14.57 x 0|
|Day's Range||13.83 - 14.75|
|52 Week Range||4.93 - 26.79|
|Beta (5Y Monthly)||3.20|
|PE Ratio (TTM)||N/A|
|Earnings Date||May 12, 2021 - May 17, 2021|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||13.01|
Innovative Industrial Properties, a pot-focused REIT, reported Q4 results after the close Wednesday that missed estimates.
Jefferies analyst Owen Bennett reiterated his underperform rating on Aurora Cannabis Inc. stock on Wednesday, and said second-quarter earnings released last week "only reinforced our concerns on its underlying business." Canadian sales pressure "were more pronounced than we had assumed, with little improvement on the margin profile," Bennett wrote in a note to clients. "Second, given the near-term debt overhang and its high cash burn rate, we raise questions marks on whether Aurora's balance sheet is strong enough to support a potential US push." The analyst raised his stock price target to C$9.44 ($7.51) from C$4.59, to reflect U.S. developments. The cannabis sector has rallied in recent weeks amid high hopes for reforms of U.S.' strict cannabis laws, that continue to classify the plant as a Schedule I drug, alongside heroin. The new administration is deemed more cannabis-friendly than the last one, and already Senate Majority Leader Chuck Schumer has pledged to make cannabis legislation a key part of the current Congress. "While Aurora is not as expensive as certain other Canadian peers, for the others you can make a much better case for US optionality," said Bennett. "For example, Canopy takes ownership in an MSO and Cronos is sitting on C$1bn in cash with little debt, so can buy US assets, or at least invest aggressively. The same can't be said for Aurora." The analyst lowered his full-year gross margin forecast and raised his sales, general & administration cost forecasts. Aurora's U.S.-listed shares were up 4.3% premarket, but have fallen 43% in the last 12 months, while the Cannabis ETF has gained 87% and the S&P 500 has gained 16%.
Aurora Cannabis (NYSE: ACB) has struggled to grow its business, and its investors have grown accustomed to seeing red on its bottom line. The company has failed to post an operating profit or even achieve profitability on an adjusted EBITDA basis. Let's take a closer look at how Aurora performed in its most recent quarter and whether investors should be more bullish on this troubled pot stock.