With $0 target, GLJ says short Aurora Cannabis on recent rally
Even though Aurora Cannabis' free cash flow burn in fiscal Q1 accelerated to negative C$124.3M, the stock is up nearly 75% in November due to excitement around Joe Biden winning the U.S. presidential race, GLJ Research analyst Gordon Johnson tells investors in a research note.
The rally comes despite the fact that Aurora cannot legally operate, barring a change in Canadian national law, in the U.S. cannabis market, says the analyst. Johnson recommends using the recent rally to increase or add short positions in the name. He keeps a Sell rating on the stock with a $0 price target. Aurora Cannabis closed Monday up 1c to $6.81.