The Globe and Mail reports in its Wednesday, Sept. 29, edition that Canaccord Genuity analyst Matt Bottomley is maintaining his "sell" recommendation for Aurora Cannabis. The Globe's David Leeder writes that Mr. Bottomley trimmed his share target by 50 cents to $6.50. Analysts on average target the shares at $7.85. Mr. Bottomley says in a note: "As part of its earnings release, the company reiterated its plan to implement $60-million to $80-million of cost savings over the next year and a half. A majority of savings (60 per cent) are expected to result from its recently right-sized infrastructure in addition to lowered SG&A. ... The company currently has a healthy unrestricted cash balance of $421-million. However, we note that this came at no small cost considering that during FY2021 the company has raised $666-million of equity with its basic share count up 63 per cent over this time period. As the company reiterated its expectation of reaching positive adjusted EBITDA in the next two quarters, we believe additional share issuances via its ATM will likely be limited to strategic opportunities over the near/medium term." He says he expects sector headwinds to "bleed" into the next fiscal year.
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