Trump's Executive Order Urges Cannabis Rescheduling, Potentially Eliminating 280E Tax Burden
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 19 2026
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Source: Benzinga
- Significant Policy Shift: President Trump's executive order urging the DOJ to reschedule cannabis is hailed as the most consequential federal cannabis policy change in over 50 years, potentially transforming the tax landscape for U.S. cannabis operators.
- Tax Burden Relief: Rescheduling cannabis would automatically eliminate Section 280E, allowing legal state operators to deduct standard operating costs, significantly improving their balance sheets and cash flow profiles.
- Positive Market Reaction: The AdvisorShares MSOS ETF outperformed the S&P 500 in 2025, and while the sector remains the 'most volatile' place to invest, Ahrens predicts a market 'pop' upon finalization of the rescheduling.
- Challenges Ahead: Despite the positive first step of rescheduling, U.S. cannabis companies still cannot list on major exchanges, and the industry awaits 'safe harbor' provisions for banking, necessitating caution from investors regarding future market volatility.
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
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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.
