Shares of Aurora Cannabis (ACB) - Get Aurora Cannabis Inc. Report dropped Friday after the company's fiscal third quarter came up short of Wall Street's expectations, prompting a number of analysts to cut their ratings and price targets.
For the third quarter ended March 31, the Calgary, Alberta, cannabis company reported a loss of C$165.7 million ($US136.6 million), or a loss of C$0.85 a share, on revenue of C$55.2 million. Analysts surveyed by FactSet were expecting a loss of C$0.25 a share on revenue of C$68.7 million.
"Consistent with many of our peers, the quarter presented challenges in the Canadian adult-use segment. This reinforces the importance of Aurora's broadly diversified business model that balances domestic medical, international medical, and adult-use platforms," Chief Executive Miguel Martin said in a statement.
Analysts at ATB downgraded the stock to underperform from sector perform while cutting the price target to C$7.50 from C$13, saying the company's near-term growth outlook remains uncertain.
Canaccord Genuity analyst Matt Bottomley downgraded the stock to sell from hold while halving his price target to C$7.
Desjardin analyst John Chu maintained a sell rating while lowering the price target to C$8 from C$11. The third-quarter report included some of the concerns Chu has had since his February downgrade of the stock to sell. Those concerns included a loss of recreational-market and growth uncertainty.
Cantor Fitzgerald remained neutral while lowering its price target to C$9 from C$11.25. The investment firm called out the company's 21% revenue miss and large inventory impairment.
Aurora Cannabis shares at last check were down 9.2% to $6.65.