Trump Reschedules Cannabis to Schedule 3, Potentially Boosting Canopy and Aurora
Written by Emily J. Thompson, Senior Investment Analyst
Source: Fool
- Regulatory Milestone: Trump's executive order reschedules cannabis from Schedule 1 to Schedule 3, indicating some medical benefits and reduced abuse potential, which could create a more favorable market environment for cannabis companies.
- Improved Banking Access: This change enables U.S. cannabis companies to access banking services more easily and deduct normal business expenses, potentially boosting demand for cannabis products and leading to higher revenues and profits.
- Ongoing Market Challenges: Despite the positive news, cannabis remains illegal at the federal level, and interstate commerce is still prohibited, posing ongoing challenges for growers, particularly as Aurora Cannabis lacks a retail or distribution presence in the U.S.
- Cautious Investment Outlook: While the U.S. market holds significant potential, both Canopy Growth and Aurora Cannabis face stiff competition and unfavorable federal laws, leading investors to approach these stocks with caution.
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.
