Aurora Cannabis: Buy The Election Overreaction
Summary
- Aurora Cannabis dropped over 10%, along with the broader cannabis market, due to concerns over U.S. election results. Despite this, Aurora has no U.S. cannabis operations and is unaffected.
- Aurora reported robust revenue growth, with a 29% YoY increase, driven by a 93% rise in international medical cannabis sales.
- The company re-affirmed positive free cash flow expectations for Q3 and demonstrated strong spending discipline, maintaining positive adjusted EBITDA for the 8th consecutive quarter.
- With a debt-free balance sheet and $152 million in cash, Aurora is well-prepared to capitalize on opportunities and mitigate market volatility risks. The recent market sell-off may be unwarranted given Aurora's strong financial position and promising outlook.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of ACB:CA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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