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Fly News Breaks for February 25, 2020
ACB
Feb 25, 2020 | 07:25 EDT
Needham analyst Matt McGinley initiated coverage of Aurora Cannabis with a Hold rating and $1.50 price target. The analyst notes that the investment by Canada's licensed cannabis producers has "far exceeded market development", with FY20 having to endure a period of infrastructure "rationalization". McGinley adds that Aurora is "deeply unprofitable", and like its peers will have to complete the task of drastic operating structure reduction while still growing its revenue. The analyst still expects the company to reach positive EBITDA by Q1 of FY21, though any shortfalls would likely place it into "liquidity risk".