A Cowen analyst affirmed an outperform rating on Aurora Cannabis stock.
Analyst Vivien Azer based the rating on her expectations for the cannabis company to more carefully control production costs, selling, general and administrative expenses and capital spending, while restructuring debt covenants. The analyst has a price target of C$6, or US$4.60 on the shares.
Azer said management is "working with its creditors to restructure" its debt covenants. She feels “encouraged” that Aurora’s inventory levels are in focus, and that that should aid better working capital management.
According to Azer, Aurora is well-positioned to benefit from the legal recreational cannabis market in Canada and global medical cannabis market.
However, Azer also mentioned risks of lower-than-expected revenue and profit - due to stricter regulations on cannabis, and possibilities of consumer demand lagging expectations and supply-chain execution undergoing challenges.
ACB saw its Momentum Indicator move below the 0 level on February 20, 2024. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 88 similar instances where the indicator turned negative. In of the 88 cases, the stock moved further down in the following days. The odds of a decline are at .
The Moving Average Convergence Divergence Histogram (MACD) for ACB turned negative on February 20, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 44 similar instances when the indicator turned negative. In of the 44 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ACB declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for ACB entered a downward trend on February 23, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The RSI Indicator demonstrates that the ticker has stayed in the oversold zone for 2 days, which means it's wise to expect a price bounce in the near future.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 8 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where ACB advanced for three days, in of 210 cases, the price rose further within the following month. The odds of a continued upward trend are .
ACB may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.454) is normal, around the industry mean (49.373). P/E Ratio (0.000) is within average values for comparable stocks, (90.597). ACB's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (2.690). ACB has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.027). P/S Ratio (1.109) is also within normal values, averaging (66.395).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating slightly worse than average price growth. ACB’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. ACB’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 91, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a licensed producer of medical marijuana in Canada
|MFs / NAME
|MFS Intrinsic Value R3
|American Century Sustainable Equity I
|MFS Blended Research Core Equity R1
|Eaton Vance Tx-Mgd Small-Cap C
|Weitz Partners III Opportunity Investor
A.I.dvisor indicates that over the last year, ACB has been closely correlated with CGC. These tickers have moved in lockstep 70% of the time. This A.I.-generated data suggests there is a high statistical probability that if ACB jumps, then CGC could also see price increases.