Trump Reschedules Cannabis to Schedule 3, Impacting Canopy Growth and Aurora Cannabis
Written by Emily J. Thompson, Senior Investment Analyst
Source: NASDAQ.COM
- Regulatory Change: Trump's executive order reschedules cannabis from Schedule 1 to Schedule 3, indicating some medical benefits and reducing abuse potential, which could provide U.S. cannabis companies easier access to banking services and normal business expense deductions.
- Market Outlook: While this policy may boost demand for cannabis products in the U.S., both Canopy Growth and Aurora Cannabis face legal and competitive pressures, particularly since Aurora lacks a retail or distribution presence in the U.S.
- Financial Challenges: Aurora Cannabis has struggled financially for years, still operating at a loss despite its prominent position in Canada, making its success in the U.S. uncertain, especially in a competitive landscape.
- Investment Warning: Despite favorable policies for the cannabis industry, the investment outlook for Canopy Growth and Aurora Cannabis remains bleak, with analysts advising investors to consider other stocks with greater potential instead of investing in these two companies.
Analyst Views on ACB
Wall Street analysts forecast ACB stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ACB is 4.32 USD with a low forecast of 4.32 USD and a high forecast of 4.32 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Analyst Rating
0 Buy
1 Hold
0 Sell
Hold
Current: 4.320
Low
4.32
Averages
4.32
High
4.32
Current: 4.320
Low
4.32
Averages
4.32
High
4.32
No data
About ACB
Aurora Cannabis Inc. is a Canada-based medical cannabis company. The Company’s principal business lines are focused on the production, distribution and sale of cannabis and cannabis-derivative products in Canada and internationally. The Company’s segments include Cannabis and Plant Propagation. The Company's adult-use brand portfolio includes Drift, San Rafael '71, Daily Special, Tasty's, Being and Greybeard. Its medical cannabis brands include MedReleaf, CanniMed, Aurora and Whistler Medical Marijuana Co, as well as international brands, Pedanios, IndiMed and CraftPlant. The Company also holds a 50.1% controlling interest in Bevo Farms Ltd., a supplier of propagated vegetables and ornamental plants in North America. Its subsidiaries include Aurora Cannabis Enterprises Inc., Aurora Deutschland GmbH, Whistler Medical Marijuana Corporation, and Indica Industries Pty Ltd., among others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
