The Globe and Mail reports in its Saturday edition that Canaccord analyst Matt Bottomley, with an unchanged "speculative buy" call, lowered his share target for Aurora Cannabis to $6 from $8. The Globe's David Leeder writes that analysts on average target the shares at $6.73. Mr. Bottomley says in a note: "Aurora reported FQ1/20 financial results (ended Sept 30) that fell shy of our expectations in a quarter that has seen many LPs stumble given limited retail infrastructure, growing inventory balances held with provincial buyers and a lack of product breadth available to consumers in advance of Cannabis 2.0. For the quarter, the company reported total net revenues of $75.2-million, a sizable quarter-over-quarter decrease of 24 per cent and below our forecast of $85.6-million. Although we were expecting an overall sequential decline due to elevated wholesales in the prior quarter that were not expected to reoccur at similar levels, the miss was attributed to a 33-per-cent drop in recreational cannabis sold to provincial buyers -- a seemingly common theme witnessed as part of this earnings season. We believe many of the metrics achieved by the company in the quarter should be incrementally encouraging to investors."
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