Aurora Cannabis price target lowered to $1 from $2 at Piper Sandler

Piper Sandler analyst Michael Lavery lowered the firm’s price target on Aurora Cannabis to $1 from $2 and keeps a Neutral rating on the shares. The analyst reduced sales estimates to "better reflect softer cannabis momentum, with a more conservative outlook in Canada and internationally." However, Aurora appears to still be on track to have an EBITDA-positive run rate at the end of Q2 of 2023, Lavery tells investors in a research note. He thinks Aurora’s cost-cutting initiatives should drive "significant sequential margin improvement," and models the company reaching positive adjusted EBITDA Q3 of 2023. Aurora’s "strong" balance sheet gives it an advantage in a capital constrained industry, though regulatory changes are needed for it to generate any substantial topline momentum in the U.S., contends Lavery.