Stifel upgrades Aurora Cannabis to hold from sell

Stifel analyst W. Andrew Carter on Monday upgraded Aurora Cannabis Inc. to hold from sell and trimmed his price target to C$2.15 ($1.71) a share from C$2.50 a share after a $173 million financing deal that the cannabis company announced recently. Carter said the company’s enhanced liquidity and reduced balance sheet risk have not been fully appreciated by investors. “We believe the shares have rerated to a level properly considering the near-term challenges in returning to year over year growth with modest cash needs,” Carter said. “We believe Aurora has outlined a pragmatic approach that recognizes the limitations of the Canadian adult use market while adjusting its cost structure.” Shares of Aurora Cannabis rose 1.3% in premarket trades. The stock is down 70% in 2022, compared to a drop of 72.8% by the Cannabis ETF .

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