The Globe and Mail reports in its Thursday, June 25, edition that Canaccord Genuity analyst Matt Bottomley trimmed his financial expectations and target price for shares of Aurora Cannabis ($18.65) in response to Tuesday's update to its business transformation plan, noting "sizable layoffs and impairments [are] in the pipeline." The Globe's David Leeder writes in the Eye On Equities column that while maintaining a "hold" rating, Mr. Bottomley dropped his share target for Aurora to $21 from $24. Analysts on average target the shares at $15.60. Mr. Bottomley says in a note: "On the back of Tuesday's corporate updates, although we believe the rightsizing of Aurora's operations is a crucial step in the company's path to profitability, with more than $1.2-billion of announced write-offs so far in the first six months of 2020 (or 25 per cent of the book value of ACB's net assets), a high degree of uncertainty still clouds this name. As a result, we have lowered our pricing assumptions for dried bud and added a 100 basis points premium to our adult-use valuation for execution risk. As a result, we are lowering our price target." Elsewhere, Stifel analyst Andrew Carter raised Aurora to "hold" from "sell."
© 2024 Canjex Publishing Ltd. All rights reserved.