The Globe and Mail reports in its Tuesday, Feb. 25, edition that Cowen analyst Vivien Azer, growing "increasingly cautious on the outlook for cannabis in Canada," downgraded Aurora Cannabis ($2.08) to "market perform" from "outperform." The Globe's David Leeder writes in the Eye On Equities column that Ms. Azer slashed her share target to $2.50 from $6. Analysts on average target the shares at $2.59. Seeing slower-than-expected growth of Canadian industry, Ms. Azer cut her forecast for 2020 legal market cannabis sales by 32 per cent to $3.5-billion, pointing to several headwinds, including price concerns stemming from a "significant influx of value-based brands in the market" and a "glut of mid-priced inventory." Ms. Azer says in a note: "Headwinds that have plagued the industry (pricing, stores, inventory) do not appear to be fading as anticipated, while 2.0 is likely not the elixir that the market was hoping for." Canopy Growth remains our only 'outperform' rated stock among the Canadian LPs." The Globe reported on Nov. 18, 2019, that Canaccord analyst Matt Bottomley kept Aurora at "speculative buy." He cut his share target to $6 from $8. It was then worth $3.59.
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