Cannabis shares were blended on Tuesday, with Aurora Cannabis Inc. a standout, after Cowen designated his shares Top Pick in the sector, citing growth opportunities in the Canadian legal recreational market and the growing international medical market.
ACB, + 6.98%
rose 4.4%, after Cowen had awarded a higher price and C $ 1
"The company's great cultivation footprint, which can produce over 575,000 kg, gives ACB the necessary infrastructure to weather early storms in adult use, while continuing to grow high-value earnings in the medical market," analysts led by Vivien Azer said in a note.
Cowen expects the Canadian recreational and medical market to represent a total addressable market of around $ 12 billion by 2025. It expects the international medical market to rise to $ 31 billion by 2024, up from a previous estimate of just 9 billion dollars.
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Aurora's presence in 23 international markets should increase its ability to capture global market share, the note said. Cowen expects Aurora to generate revenue of $ 305 million in fiscal 2019, increasing to $ 742 million in fiscal 2020 and $ 1.34 billion in fiscal 2022.
Cronos Group Inc.