Major Broker Dealers Are Getting More Bullish On Aurora Cannabis

Aurora Cannabis (ACB.TO) (ACB) is one of the most well-known names in the cannabis industry and is an opportunity that we have been highly focused on.

From raising more than $135 million to being approved to be part of a French medical cannabis study, Aurora Cannabis has been executing on a multi-national growth strategy and has reported several significant developments so far this year. Last year, a new management team took over the business following the acquisition of Reliva (a leading North American CBD brand) and we are favorable on the direction the business is heading.

So far this year, Aurora Cannabis’ stock price has rallied more than 50% and the market has responded favorably to several key developments that were reported by it. The performance of the business caused a leading Canadian broker-dealer to raise its price target on Aurora Cannabis and we are favorable on this trend.

Below, we highlighted some of the most important milestones that were reported by Aurora Cannabis earlier this year. We believe that our readers need to be aware of these developments and are of the opinion that Aurora Cannabis represents a turnaround story in the making:

  1. February 8th: CIBC raised its price target on Aurora Cannabis to $17 from $15 (CAD). This price target implies that there is less than 4% upside to current levels and we will expect additional broker-dealers to raise price targets on Aurora Cannabis
  2. January 27th: Signed a five-year supply agreement with MedReleaf Australia to act as the exclusive supplier of Aurora’s cannabis brands in Australia. The agreement does not require any investment from Aurora Cannabis and includes EU GMP certified products like dried flower, oils, soft gels, and future products that use new delivery mechanisms. Aurora owns 10% of MedReleaf Australia
  3. January 26th: Closed a $137.5 million bought deal private placement that included the entire over-allotment option. Aurora Cannabis plans to use the net proceeds for general corporate purposes, which may include opportunistically reducing debt and believes that in falls in line with its strategy to have a strong balance sheet while maintaining maximum flexibility to work towards being a global leader in cannabinoid market
  4. January 14th: Signed an agreement where Great North Distributors will be exclusive representative for Aurora’s leading portfolio of brands across the Canadian cannabis retail environment. Great North has leverage to every Canadian province and has established relationships with provincially owned and operated retailers and private retailers. The firm applies industry-leading data analytics capabilities to the sector and provides suppliers with a powerful data-driven approach to cannabis sales.
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