Shares of Aurora Cannabis (NYSE:ACB) were flying 18.5% higher as of 1:26 p.m. EDT on Tuesday. There were two likely factors behind the big gain. Jefferies analyst Owen Bennett upgraded Aurora to hold from underperform on Monday. Also, investors could be hoping for some good news with the company’s fiscal 2020 Q4 update later today.
It’s probably best to not make too much out of Aurora’s jump today. Both of the reasons behind the gain come with asterisks.
While Jefferies’ Bennett upgraded the marijuana stock, he also slashed his price target by nearly 38% to $6.53. Aurora’s shares currently trade well above that target. In addition, Bennett noted that the company continues to face liquidity challenges and will probably have to raise more cash.