Stifel analyst W. Andrew Carter downgraded Aurora Cannabis (ACB) to Sell from Hold with a price target of C$5.00, down from C$7.00.

The analyst sees "meaningful downside" from current share levels following the company's "disappointing" Q4 earnings release.

The quarter pointed to a "less robust" in-market performance and difficulty to continue positioning for the larger global opportunity, Carter tells investors in a research note. He believes this will manifest in a discounted valuation for Aurora relative to its global peers.

Further, Aurora's financing efforts will be challenged against the backdrop of "overwhelmingly negative" investor sentiment towards the sector, "damaged credibility," and limited catalysts near-term to drive enthusiasm for the shares, says Carter.