Stifel analyst W. Andrew Carter upgraded Aurora Cannabis (ACB) to Hold from Sell with a price target of C$17.50, up from C$6.20.

The company yesterday reiterated its positive fiscal Q1 EBITDA target facilitated by the achievement of its cost-savings target with a facility consolidation plan to drive further savings, Carter tells investors in a research note.

The update suggests Aurora "has weathered the storm," says the analyst. With that said, Carter believes ongoing cash needs, potential equity dilution, and risk around debt covenants "remain as impediments to a more constructive approach with the shares enjoying a still robust valuation."