Research firm Cowen on Tuesday named Aurora Cannabis (ACB) its top stock pick for the marijuana industry, replacing Canopy Growth (CGC). The firm also initiated an ”Outperform” rating on the stock, with a price target of CAD14.
The news sent ACB shares up 9%. The stock has gained over 60% since the beginning of this year.
Cowen’s bullish thesis was based on Aurora’s current 20% Canadian market share, besides the burgeoning presence in the international markets. We had earlier reported that Aurora would soon begin production in Portugal, which would act as a gateway for operations with other EU states.
Analyst Vivien Azer stated in an investors’ note, “The company’s large cultivation footprint, capable of producing over 575,000 kg, provides ACB with the necessary infrastructure to weather early storms in adult use while continuing to grow higher-value revenues in the medical market.”
However, the research firm noted that, unlike Canopy Growth, Aurora’s cash coffers might not be enough for the international expansion plans, hence caution needs to be taken.
Cowen projects that the Canadian cannabis industry would be valued at around $CAD 12 billion within the next six years. Meanwhile, the international market is estimated to grow to $31 billion by 2024.
Last month, Aurora Cannabis reported a loss of C$238 million in the second quarter of 2019, compared to a profit of C$7.7 million in the year-ago quarter. Net revenue of C$54.2 million was up 363% year-over-year and 83% sequentially.
Campbell Soup Company (NYSE: CPB) reported first quarter 2023 earnings results today. Net sales increased 15% year-over-year to $2.57 billion. Organic sales growth was 15%. Net earnings attributable to Campbell Soup
Fewer companies filed for initial public offering this year, compared to 2021 when the market witnessed a record number of IPOs. With only a few weeks left for the year
Chipotle Mexican Grill (CMG): A few points to keep in mind if you have an eye on this restaurant chain
Shares of Chipotle Mexican Grill Inc. (NYSE: CMG) were down 3% on Tuesday. The stock has dropped 13% year-to-date but there is still a positive sentiment in general about its