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Jan 18, 2020
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Aurora Cannabis (ACB, $2.13) has outperform rating from Cowen analyst, on debt restructuring and cost control prospects

Aurora Cannabis (ACB, $2.13) has outperform rating from Cowen analyst, on debt restructuring and cost control prospects

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.  

Related Ticker: ACB

Contributor

Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.


ACB's MACD Histogram just turned positive

The Moving Average Convergence Divergence (MACD) for ACB turned positive on November 03, 2026. Looking at past instances where ACB's MACD turned positive, the stock continued to rise in 37 of 44 cases over the following month. The odds of a continued upward trend are 84%.

Price Prediction Chart

Technical Analysis (Indicators)

Bullish Trend Analysis

The Momentum Indicator moved above the 0 level on October 30, 2026. You may want to consider a long position or call options on ACB as a result. In 69 of 90 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 77%.

ACB moved above its 50-day moving average on October 27, 2026 date and that indicates a change from a downward trend to an upward trend.

The 10-day moving average for ACB crossed bullishly above the 50-day moving average on November 03, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 12 of 17 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 71%.

Following a +24.17% 3-day Advance, the price is estimated to grow further. Considering data from situations where ACB advanced for three days, in 180 of 235 cases, the price rose further within the following month. The odds of a continued upward trend are 77%.

The Aroon Indicator entered an Uptrend today. In 79 of 116 cases where ACB Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 68%.

Bearish Trend Analysis

The RSI Indicator demonstrates that the ticker has stayed in the overbought zone for 5 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.

The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 6 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.

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 50 of 62 cases within the following month. The odds of a continued downward trend are 84%.

ACB broke above its upper Bollinger Band on November 03, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.

Fundamental Analysis (Ratings)

The Tickeron Valuation Rating of 24 (best 1 - 100 worst) indicates that the company is slightly undervalued 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 (0.629) is normal, around the industry mean (6.379). P/E Ratio (-2.701) is within average values for comparable stocks, (0.548). Projected Growth (PEG Ratio) (0.020) is also within normal values, averaging (2.202). Dividend Yield (0.000) settles around the average of (0.062) among similar stocks. P/S Ratio (0.984) is also within normal values, averaging (183.387).

The Tickeron Price Growth Rating for this company is 36 (best 1 - 100 worst), indicating steady price growth. ACB’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron SMR rating for this company is 96 (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 98 (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 100 (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 83, placing this stock worse than average.

Notable companies

The most notable companies in this group are Teva Pharmaceutical Industries Limited (NYSE:TEVA), ZOETIS (NYSE:ZTS), Elanco Animal Health (NYSE:ELAN), Bausch Health Companies (NYSE:BHC), BioCryst Pharmaceuticals (NASDAQ:BCRX), Tilray Brands Inc. (NASDAQ:TLRY), Aurora Cannabis (NASDAQ:ACB), Canopy Growth Corp (NASDAQ:CGC), Journey Medical Corp (NASDAQ:DERM).

Industry description

A generic drug contains the same chemical substance as a drug that was originally protected by patents. Generic drugs are generally sold at cheaper price points, compared to name-brand pharmaceuticals, after patents for the more expensive drugs lapse. The generic drug industry has created a major market, thanks to the lower pricing. According to the Center for Justice and Democracy at New York Law School, 80 percent of all drugs prescribed are generic, and generic drugs are chosen 94 percent of the time when they are available. But their manufacturers must be able to prove to the FDA that they can be effective substitutes for the original drugs. Some of the major generic drug makers include Zoetis, Inc., Allergan plc and Mylan N.V.

Market Cap

The average market capitalization across the Pharmaceuticals: Generic Industry is 4.46B. The market cap for tickers in the group ranges from 2.12K to 68.49B. MKGAF holds the highest valuation in this group at 68.49B. The lowest valued company is CANQF at 2.12K.

High and low price notable news

The average weekly price growth across all stocks in the Pharmaceuticals: Generic Industry was -0%. For the same Industry, the average monthly price growth was -7%, and the average quarterly price growth was 10%. XERS experienced the highest price growth at 53%, while AKAN experienced the biggest fall at -32%.

Volume

The average weekly volume growth across all stocks in the Pharmaceuticals: Generic Industry was 10%. For the same stocks of the Industry, the average monthly volume growth was 21% and the average quarterly volume growth was 16%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 43
P/E Growth Rating: 55
Price Growth Rating: 61
SMR Rating: 87
Profit Risk Rating: 83
Seasonality Score: 3 (-100 ... +100)
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a licensed producer of medical marijuana in Canada

Industry PharmaceuticalsGeneric

Industry
Pharmaceuticals Other
Address
90B Street SW
Phone
+1 855 279-4652
Employees
1028
Web
https://www.auroramj.com
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Aurora Cannabis (ACB, $2.13) has outperform rating from Cowen analyst, on debt restructuring and cost control prospects