2019-02-13 09:12 ET - In the News

The Globe and Mail reports in its Wednesday, Feb. 13, edition that Aurora Cannabis posted results that matched estimates. The Globe's Gillian Livingston writes that analyst Matt Bottomley says in a note: "Aurora reported FQ2/19 results (ended Dec 31) that ... represented a strong initial showing in its first full quarter of Canadian recreational sales. Aurora reported net revenue of $54.2-million, which was at the high end of its guided range of $50-million to $55-million and exactly in line with our forecasts for the quarter. The 82.6 per cent quarter over quarter growth in revenue was largely attributed to about $21.6-million of recreational sales, which management believes represented about 20 per cent of all volumes sold through recreational channels for the period. Based on our forecasts, this places the company with the second highest rec market share in the industry right out of the gate, which we believe demonstrates strong execution by the company as many producers experienced logistical supply chain challenges in fulfilling initial recreational orders. ... Management reiterated its guidance of becoming EBITDA positive in FQ4/19." He rates Aurora "speculative buy," with a $13 share target.