(ACB) – Cantor Fitzgerald Recaps Aurora Cannabis’ Q2 Report: ‘Trends Are Encouraging’Posted by On


Investors should continue sticking to the sidelines when it comes to Aurora Cannabis Inc (NYSE: ACB).

That’s according to a Cantor Fitzgerald analyst, citing the sales and EBITDA miss in the cannabis company’s most recent earnings report.

The Aurora Cannabis Analyst: Cantor analyst Pablo Zuanic maintains a Neutral rating on Aurora’s TSX-listed stock with a price target lifted from C$17 to C$18.

The Aurora Cannabis Thesis: Aurora reported total net cannabis sales of C$67.7 million that were 2% shy of consensus estimates while EBITDA of C$-16.8 million missed expectations of C$-5.5 million, Zuanic wrote in a note.

Despite falling short, revenue was “at least better than we had expected” and EBITDA loss as a percentage of sales improved from -85% in the prior quarter to -25%.

Related Link: Aurora Posts Q2 Earnings, Touts 562% Spike In ‘International Medical’ Cannabis Sales

The company still has a long way to go before break-even EBITDA although the earnings report suggests a path towards higher margins, the analyst wrote.

Aurora’s shift to derivative products and premium flower along with growth in the profitable international business bodes well for growth prospects.

“We realize the stock market context is volatile, but all else being equal, we think trends are encouraging for ACB,” Zuanic added. “Also, in relative terms, ACB is
attractively valued, although…

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Investors should continue sticking to the sidelines when it comes to Aurora Cannabis Inc (NYSE: ACB).

That’s according to a Cantor Fitzgerald analyst, citing the sales and EBITDA miss in the cannabis company’s most recent earnings report.

The Aurora Cannabis Analyst: Cantor analyst Pablo Zuanic maintains a Neutral rating on Aurora’s TSX-listed stock with a price target lifted from C$17 to C$18.

The Aurora Cannabis Thesis: Aurora reported total net cannabis sales of C$67.7 million that were 2% shy of consensus estimates while EBITDA of C$-16.8 million missed expectations of C$-5.5 million, Zuanic wrote in a note.

Despite falling short, revenue was “at least better than we had expected” and EBITDA loss as a percentage of sales improved from -85% in the prior quarter to -25%.

Related Link: Aurora Posts Q2 Earnings, Touts 562% Spike In ‘International Medical’ Cannabis Sales

The company still has a long way to go before break-even EBITDA although the earnings report suggests a path towards higher margins, the analyst wrote.

Aurora’s shift to derivative products and premium flower along with growth in the profitable international business bodes well for growth prospects.

“We realize the stock market context is volatile, but all else being equal, we think trends are encouraging for ACB,” Zuanic added. “Also, in relative terms, ACB is
attractively valued, although…



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