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.
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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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 …