Whether you’re an existing or prospective investor in Aurora Cannabis Inc. (TSX:ACB) (NYSE:ACB) it can be nice to get a Wall Street analyst’s opinion on where they think things are headed. Even better than one analyst’s opinion is five analysts’ opinions.
This is especially useful guidance now that Aurora recently commenced sales of cannabis oils to German pharmacies following receipt of all necessary approvals from the Canadian and German regulatory authorities. Shares of Aurora also shot up recently following the appointment of Procter & Gamble Director Nelson Peltz as a Strategic Advisor.
Do Analyst Opinions Even Matter?
Analysts have been around as long as stocks, but they’ve never been as influential as today. Given how quickly information passes through the investor ecosystem, one analyst’s update can send a company’s shares tumbling or soaring.
Analysts aren’t just market-moving, though. They’re also highly qualified investment professionals that have devoted years to studying business and investments to earn designations like CFA or CPA. Their knowledge combined with their unparalleled access to company executives and information means analyst updates are always worth reading.
When it comes to marijuana stocks, it is no different.
What Analysts Think of Aurora Cannabis
Currently, there are a total of nine different Wall Street analysts covering shares of Aurora Cannabis. In the last 2 months, five of them have provided guidance on what to expect.
From lowest price target to highest price target, here’s where analysts think shares of ACB are heading:
$10.00 CAD Per Share – BMO Capital Markets
$12.00 CAD Per Share – Jefferies
$13.00 CAD Per Share – Canaccord Genuity
$14.00 CAD Per Share – Cowen & Co.
$15.00 CAD Per Share – GMP Securities
Combining the five analyst price targets above, we can see an average analyst price target of $12.80 CAD per share. Based on a last-traded price of $12.10 CAD per share on the TSX, that represents just 5.78% of potential upside for shares of ACB. Meanwhile, analysts are seeing over 100% upside for shares of Canopy Rivers Inc. (TSXV:RIV) (OTC:CNPOF).
When it comes to analyst opinions, however, the price target isn’t even half of it. All analyst price targets are subject to change, and most analysts update their outlooks and price targets often.
What really matters is why and how each analyst arrived that their price targets. That helps us better determine the catalysts that can propel Aurora to success as well as the risks that the company may face before reaching its full potential.
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