Aurora Cannabis stock was rising sharply on Tuesday, up more than 9% following a bullish call from Cowen & Co.
The back story. Aurora Cannabis stock (ACB) has been on a tear in 2019, rising 58.5% since the start of the year. It hasn’t been a straight shot upward for the Canadian cannabis company, but Aurora’s acquisition of Whistler Medical Marijuana drew cheers in January, as did its earnings in February. This has all come amid general enthusiasm for pot stocks on Wall Street and among other consumer products companies. There may be a long road ahead to get U.S. federal approval, but analysts are optimistic about Aurora’s prospects, along with that of many of its peers.
What’s new. Cowen’s Vivien Azer, a leading analyst in the sector, initiated coverage of Aurora with an Outperform rating and a price target of $14 Canadian. (The Alberta-based Aurora trades on both the New York Stock Exchange and the Toronto stock exchange under the same ticker.) “While establishing 20% market share has been an early success story in Canadian adult use cannabis, the company is uniquely positioned to drive leadership in both share and profitability,” Azer wrote. [Read more at Barron’s]