Shares of Aurora Cannabis Inc. fell Friday, after BMO Capital analyst Tamy Chen turned bearish on the Canada-based cannabis company, saying she is “unable to justify” current valuations.
Chen cut her rating to underperform from market perform, while revising her target on the stock
ACB,
ACB,
C$9 from C$7.
That makes Aurora the only cannabis stock Chen is bearish on, as she has market perform ratings on all the other cannabis companies she covers.
She said the result of the U.S. election introduced “exceptional volatility” in cannabis stocks, with those she covers rallying between 50% and 100%, and with Aurora’s stock more than doubling. Many expect President-elect Joe Biden to push for reforms that will allow marijuana companies to access U.S. banks and capital markets.
Aurora’s U.S.-listed stock dropped 1.8% in afternoon trading Friday, putting in on track to suffer a third-straight loss.
The stock had soared as much as 146.9%, from the Nov. 2 close of $4.73 to a four-month closing high of $11.68 on Nov. 30, before paring some gains. At current prices, the stock is still up 102.1% since Nov. 2.
Meanwhile, the ETFMG Alternative Harvest exchange-traded fund
MJ,
has climbed 33.3% since Nov. 2 while the S&P 500 index
SPX,
…
Original Author Link click here to read complete story..
Shares of Aurora Cannabis Inc. fell Friday, after BMO Capital analyst Tamy Chen turned bearish on the Canada-based cannabis company, saying she is “unable to justify” current valuations.
Chen cut her rating to underperform from market perform, while revising her target on the stock
ACB,
ACB,
C$9 from C$7.
That makes Aurora the only cannabis stock Chen is bearish on, as she has market perform ratings on all the other cannabis companies she covers.
She said the result of the U.S. election introduced “exceptional volatility” in cannabis stocks, with those she covers rallying between 50% and 100%, and with Aurora’s stock more than doubling. Many expect President-elect Joe Biden to push for reforms that will allow marijuana companies to access U.S. banks and capital markets.
Aurora’s U.S.-listed stock dropped 1.8% in afternoon trading Friday, putting in on track to suffer a third-straight loss.
The stock had soared as much as 146.9%, from the Nov. 2 close of $4.73 to a four-month closing high of $11.68 on Nov. 30, before paring some gains. At current prices, the stock is still up 102.1% since Nov. 2.
Meanwhile, the ETFMG Alternative Harvest exchange-traded fund
MJ,
has climbed 33.3% since Nov. 2 while the S&P 500 index
SPX,
…
