The Globe and Mail reports in its Friday, May 17, edition that Desjardins Securities analyst John Chu says although Aurora Cannabis's ($11.95) third quarter results fell short of expectations on The Street, it is making "meaningful progress." The Globe's David Leeder writes in the Eye On Equities column that Mr. Chu notes Aurora's "robust" medical market and gains in the recreational market. Mr. Chu continues to rate Aurora "buy" with an unchanged share target of $16.50. Analysts on average target the shares at $13.98. Mr. Chu says in a note: "We are encouraged by the continued progress operationally and on the sales front. As production ramps up, we see a mix shift evolving on the product side (eg oils), by geography (Europe) and by segment (domestic medical), all of which should also drive margins higher. ... Canadian industry sales for 1Q CY19 appear on pace to decline 5 per cent quarter-over-quarter (assuming March sales are flat with February levels). Meanwhile, Aurora's 3Q FY19 recreational sales increased 37 per cent qoq, suggesting meaningful market share gains. In contrast, CannTrust's March-ending quarterly sales increased 5 per cent qoq, while Cronos reported sales rose 18 per cent."
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