At the time, Cantor Fitzgerald’s analyst Pablo Zuanic lowered his price target to CA$9.00 from CA$11.25 while keeping a “Neutral” rating on Aurora’s stock.
Zuanic further asked whether exiting from domestic recreational cannabis would make sense for the company.
Four months later, the company is about to report its fourth-quarter results after the close on Tuesday, Sept. 21, and the Zuanic seems to still have doubts.
In his latest note on Thursday, Zuanic kept a Neutral rating on Aurora’s stock but reduced its price target to CA$8.3 from CA$12 due to decreased sales estimates and sectoral derating. He
estimates that domestic medical marijuana sales and exports now comprise close to 90% of earnings as the company continues to show undisputed dominance in both of those areas.
Still, a "consistent QoQ mid-teens drop in domestic recreational sales" remains a concern for the analyst. In the third …