Piper Sandler analyst Michael Lavery upgraded Aurora Cannabis (ACB) to Neutral from Underweight with a price target of $10, down from $12, following the company's fiscal Q3 results.

Aurora is working through significant cost savings initiatives and appears to have stabilized its sales momentum, Lavery tells investors in a research note.

The company's European sales have resumed, and have recovered better than previously expected, adds the analyst. Further, he believes Aurora's value brand, Daily Special, can likley drive further share gains from industry down-trading and the illicit market.