Shares of Aurora Cannabis (NYSE :), (TSX 🙂 🙂 yesterday refused to follow the analysts' script and showed that they are bouncing, ending the day with more than 3%. The trajectory is a reversal of how the stock was moving last week after two analysts lowered their ratings and price targets. The test will now be to see if that bounce was just a whip.
At the end of last week, the stock of Edmonton-based cannabis grower recorded a double-digit loss after the downgrades to sell: the reason for this was basically cash – or the company's lack thereof.
Aurora weekly price chart
The first to make the switch was Piper Sandler analyst Michael Lavery last Thursday. According to reports, he wrote a letter to customers who predicted that the target price for the share would hit US $ 1, a significant drop from the previous mark of US $ 3. The investment bank said it did not believe that Aurora was far into the fiscal achieve a positive cash flow in the year 2021 and would have to refinance its debt. Aurora closed that day at US $ 1.86 (C $ 2.42).
The following day, the share price fell even lower and hit US $ 1.67 (C $ 2.18) shortly after Friday.
That was the moment when BofA Merrill Lynch analyst Christopher Carey weighed on the stock exchange. He claimed that the company's balance sheet showed signs of increasing weakness. The response came quickly. At the end of last Friday, the share was US $ 1.65 (C2.15).
The stock continued its downward slope yesterday, but returned during midday trading, ending at US $ 1.70 (C $ 2.22) and winning about 3% on that day.
It is interesting to note that Cantor Fitzgerald analyst Pablo Zuanic maintained his purchase rating from yesterday with a target price of $ 3.83.
Green thumb is silvering legalization in Illinois
Investors looking for pot stocks that take upward steps should take a look at the US-based Green Thumb Industries (OTC :), (CSE :). The Chicago-based company has since the state of Illinois on January 1 won officially legalized recreational marijuana
Green Thumb Industries Weekly Price Chart
Since closing just before the Christmas holidays, Green Thumb has gone from US $ 8.38 (C $ 10.94) to close yesterday at US $ 9.67 (C $ 12.65), a profit of slightly more than 15% – not really a unicorn in the cannabis sector nowadays, but certainly a rarity. But this improvement is new. The stock has had a tough ride. Like many in the sector, it is still not close to regaining its position where it was in the first half of 2019.
Green Thumb has a footprint in 12 states, has 13 production facilities and has 96 store locations, including the seven newest stores in Illinois.
