The Globe and Mail reports in its Tuesday, June 1, edition that Desjardins Securities analyst John Chu continues to rate Auxly Cannabis Group (36.5 cents) "buy." The Globe's David Leeder writes in the Eye On Equities column that Mr. Chu trimmed his share target to 60 cents from 65 cents. Analysts on average target the shares at 52 cents.
Mr. Chu says in a note: "Auxly Cannabis Group's sales fell short of estimates while EBITDA was relatively in line. Auxly's 47-per-cent quarter-over-quarter decline in sales was more severe than we have seen from its peers (down 20–per-cent to 30-per-cent quarter-over-quarter). Recall that we had expected industry headwinds (ie store restrictions) to impact 1Q sales. We believe the upcoming June quarter could be soft as well, given the industry headwinds." The Globe reported on July 28 that Raymond James analyst Rahul Sarugaser downgraded Auxly to "outperform" from "strong buy." The shares could then be had for 24 cents. The Globe reported on Nov. 18 that Mr. Sarugaser cut his rating for Auxly to "market perform" from "outperform." In the item, Mr. Sarugasser said Auxly's market share had plateaued. It was then worth 40.5 cents.
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