03:11:59 EDT Thu 25 Apr 2024
Enter Symbol
or Name
USA
CA



Globe says Aurora Cannabis maintained at "buy"

2020-05-22 09:04 ET - In the News

The Globe and Mail reports in its Friday edition that Desjardins Securities analyst John Chu has reiterated his "buy" call on Aurora Cannabis ($24.10). The Globe's David Leeder writes in the Eye On Equities column that Mr. Chu, at the same, boosted his share target to $22 from $19. Analysts on average target the shares at $13.46. Mr. Chu says Aurora's entry into the U.S. hemp-derived CBD market adds another growth catalyst. On Wednesday, Aurora announced the acquisition of Reliva LLC in a $40-million all-share transaction. Mr. Chu says in a note: "Not only does Reliva have production assets in the U.S. and an existing broad distribution network, it also has an established product portfolio, including top-selling gummies and topicals. This appears to be a modest, low-risk and low-cost entry into the U.S. to address what is expected to be a very fast-growing sector with an estimated market potential of over $10-billion (U.S.) by 2024." Mr. Chu thinks Aurora could leverage Reliva's products, distribution network and U.S. assets if cannabis becomes federally legal south of the south of the border. The Globe reported two days ago that Canaccord analyst Matt Bottomley was "cautious" on Aurora. It was then worth $20.40.

© 2024 Canjex Publishing Ltd. All rights reserved.