Earlier this month, we highlight Aurora Cannabis Inc. (ACB.TO) (ACB) after it was upgraded by a leading broker-dealer that covers the cannabis industry. The market responded favorably to the bullish analyst call and the stock responded favorably.
Although the market initially responded favorably to the upgrade, Aurora Cannabis traded well off its recent highs and this is a trend that caught our attention. The last week has been volatile for the Canadian cannabis producer but it received a Valentine’s Day present in the form of two price target increases.
We believe the price target hikes on Aurora Cannabis is creating a bullish trend for the stock. Momentum has been trending toward overbought levels and trading volume recently spiked significantly higher. The two broker-dealers to issue price target revisions on Aurora Cannabis are:
- Canaccord Genuity raised its price target to $14 from $11 (CAD)
- CIBC raised its price target to $18.50 from $17 (CAD)
Canaccord Genuity is the largest broker-dealer that covers the cannabis industry, and it has backed the largest financings in the industry. The broker-dealer’s opinion carries weight and we often agree with many of the firm’s analysts.
Currently, Aurora Cannabis is trading below the $17 level on the Canadian side (as of February 18th) and our readers should be aware of this. The Canadian cannabis company is trading well above the price target issued by Canaccord Genuity and barely above the price target issued by CIBC.
Although Aurora Cannabis received price target increases, our readers need to be aware of where the stock is trading. Based on the price target, Canaccord Genuity is not too bullish on Aurora Cannabis and we will monitor how the story evolves from here.
If you are interested in learning more about Aurora Cannabis, please send an email to firstname.lastname@example.org with the subject “Aurora Cannabis” to be added to our distribution list.