What he describes as “superior” products is just one of the reasons PI Financial analyst Jason Zandberg thinks Aurora Cannabis (TSX:ACB) is a buy right now.

In a research report to clients today, Zandberg initiated coverage of Aurora Cannabis with a “Buy” rating and a one-year price target of $3.25.

Zandberg says he likes Aurora because the company has ramped it sales faster than any other Canadian LP, is close to finishing a state-of-the-art 800,000 square foot facility, has a unique extraction strategy and, importantly he says, has superior products.

“Aurora has among the most potent THC and CBD strains in the MMJ industry in Canada including its Warwick 2 strain with a THC concentration tested at up to 32%, and its Temple strain which has a CBD concentration tested at up to 25%,” the analyst says. “The Company has also placed among the best strains for the Lift Awards, a recognized Canadian medical cannabis organization. The Company’s three current cannabis oil products also contain among the highest concentrations of cannabinoids in the industry.”

Zandberg thinks Aurora will emerge as one of the clear winners in the nascent space.

“We believe Aurora Cannabis will continue to be among the largest cannabis companies in Canada and its Aurora Sky expansion provides significant upside to capacity and has the potential to significantly lower unit costs,” he says. “There is execution risk with a number of LPs that are ambitiously expanding capacity and ACB is no different but the advanced technology incorporated at Aurora Sky has been deployed in other industries for years which should mitigate risk.”

Zandberg thinks Aurora will post EBITDA of negative $7.99-million on revenue of $18.6-million in fiscal 2017. He expects those numbers will improve to EBITDA of positive $11.13-million on a topline of $46.62-million the following year.