Stifel: Aurora’s ‘Bad’ Q4 Extends Beyond Headline Numbers

Cannabis company Aurora Cannabis Inc (NYSE: ACB) (TSE: ACB) reported fiscal fourth-quarter results last week that looked “bad” on the surface, but look even worse when digging beyond the headline numbers, according to Stifel.

The Analyst

W. Andrew Carter downgraded Aurora’s Toronto-listed stock rating from Hold to Sell with a price target lowered from CA$7 ($5.29) to CA$5 ($3.78). 

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The Thesis

Aurora’s shortfall in the quarter is evident due to a reported $20.1 million of bulk wholesale trim sales that are unlikely to repeat at the same level, Carter said in a Sunday downgrade note. (See his track record here.)

The headline net cannabis revenue of CA$94.7 million suggests a net cannabis revenue base closer to CA$75 million versus Stifel’s estimate of CA$92.5 million.

The “lower quality” performance marks a reversal …

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