ACB Stock Price: Aurora Cannabis inc recovers as analysts back the firm

  • Aurora Cannabis is rising and distancing itself from the $2 level.
  • An analyst at Cowen has said financial changes may help the company.
  • Some investors are still reeling from the drop to $1.50.

Shares of Aurora Cannabis Inc (ACB) are rising around 6% at the time of writing and trading around $2.18. The price is on the rise after as an analyst at Cowen said that the firm will likely focus on controlling its spending and will also restructure its debt.

The new estimate may have provided bargain seekers an opportunity to purchase the stock at a low price. High volatility is set to persist

Other experts had previously brought the price down. Bank of America and Piper Sandler both downgraded the stock due to its financial issues. PS set a target of $1 with an "underweight" recommendation.

Aurora Cannabis Stock Price

Aurora Cannabis ACB price development July 2019 January 2020

In the bigger picture, the marijuana stock has been sliding from a peak of over $7 in the past six months. While the fresh recovery erases losses incurred early this year, there is a long way to go to recover previous levels.

On the business-level, the Edmonton-based firm received a blow from German authorities, that suspended selling of the company's products in the country. Even in Canada, where marijuana is legal, regulatory bottlenecks have undermined Aurora's position.

ACB is reportedly considering issuing more shares, but it has previously struggled with the dilution of existing shareholders. 

The buzz around pot stocks fizzled out during 2019 as investors demanded financial results and not only pipe dreams. Nevertheless, growing weed markets provide opportunities for companies that get their act together. 

Optimism about legalizing pot on the federal level in the US boosted stocks in late 2019, but the path to fully opening the vast American market to Canadian companies is still long. Moreover, such firms may face competition from US ones.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD trims intraday gains returns to mid-1.17

The EUR/USD pair retreated after flirting with the 1.1800 figure, as the market mood somehow turned sour. Focus on the next US fiscal relief package, coronavirus, and economic progress.


GBP/USD approaches 1.3000 once again

GBP/USD is easing towards weekly lows as dollar bulls are giving it another try. Brexit concerns and UK lockdowns in the eye of the storm.


XAU/USD bull-bear tug-of-war extends around $1975

XAU/USD sidelined heading into the European session. Downside limited by dollar weakness, coronavirus concerns. Focus remains on the USD dynamics and the United States/China updates.

Gold News

What you need to know about trading in August

The generally received wisdom is that summer is a quiet month for trading. Traders are on holiday and markets quieten down. That’s the expectation among many. However, the reality is that August can be one of the most volatile trading months of the year.

Read more

WTI: Bulls await API data to attack $41.00

WTI struggles to extend recovery moves from $40.74 beyond $41.00. Virus woes join OPEC output increase to combat drop in Russian oil production. US Factory Orders, API inventories will be the key.

Oil News