Aurora Stock Forecast 2018
One of the most exciting companies in the marijuana market, Aurora Cannabis Inc (OTCMKTS:ACBFF, TSE:ACB), has left a number of investors unsure how to proceed in 2018. Why? Because the company that is known for its ability to make strong, headline-grabbing deals and create buzz via ACBFF stock news has so far had a rather muted 2018. The Aurora stock forecast, therefore, has similarly been tempered by a number of analysts following what was a massive run to round out 2017.
Even with a weak 2018, Aurora is still up nearly 267% over the past six months. Just take a look at the Aurora stock chart below to see how successful it was in recent months:
Chart courtesy of StockCharts.com
This has led some to believe that Aurora has reached its peak, or is now fully valued. But in my view, that is shortsighted.
There’s still a lot to like about ACBFF stock, from its powerful market position to its succession of successful deals made in 2018. There’s good reason to be bullish on Aurora Cannabis stock, even if the picture is a tad less rosy than it was in 2017.
With that said, let’s jump into the Aurora stock forecast and why I think it can surpass its former heights of $12.00 per share if it plays its cards right.
ACBFF Stock News
One of the most powerful and consistent drivers of Aurora Cannabis stock has been its ability to find itself in the news, usually for the right reasons.
First, consider that Aurora completed the biggest deal in Canadian marijuana with its CA$1.1-billion acquisition of CanniMed Therapeutics Inc (OTCMKTS:CMMDF, TSE:CMED) after a month-long, bitter back-and-forth.
The company pursued CanniMed for months, even going so far as to consider a hostile takeover before the deal finally came through. While the delay didn’t do the stock any favors, the move overall is solid.
I’ve long heaped praise on larger companies in the marijuana market acquiring smaller (or in this case, not-so-small) competitors in order to ramp up their capacity before Canadian marijuana legalization hits in the summer.
These types of moves serve a dual purpose: bring up production and reduce competition. It’s savvy, and a move that many other marijuana stocks of similar size have made, usually to good effect on the stock market.
The CanniMed acquisition was therefore one of the stronger moves, if not the strongest, made by Aurora this year.
Another bit of ACBFF stock news that came out recently was that Aurora is looking to get itself on a major U.S. exchange. The company announced that it was interested in getting its ticker potentially on the NASDAQ, the London Stock Exchange, and the New York Stock Exchange.
“We’ll look at all exchanges; we’ll look at New York Stock Exchange,” said Aurora Cannabis CEO Terry Booth. “Cronos broke that barrier, and good on ’em, it’s excellent for everybody.” (Source: “Canadian Pot Stocks Are Going Global,” Bloomberg, March 8, 2018.)
The “Cronos” remark is in reference to Cronos Group Inc (NASDAQ:CRON), which became the first marijuana company to list on the NASDAQ much to CRON stock’s delight. The company surged by over 30% in the immediate aftermath of that move.
While Aurora was hoping for a boost to the stock by merely talking about hitting a bigger U.S. listing, unfortunately, the market gave a collective shrug to the news. This is in large part because there isn’t any tactile evidence yet that Aurora is moving towards a new exchange.
Should that change, however, expect to see a big move in the stock value. I firmly believe that if Aurora becomes the second marijuana company to list on a major U.S. exchange, then it should be able to easily surpass its former high of $12.00 by the end of the year.
First, the company is already in line for a strong stock surge when Canadian legalization for recreational marijuana finally does land.
While I believe that most stocks will surge then quickly face a correction in that time, overall most of the biggest marijuana stocks will come out on top with a nice stock bump.
Couple that with a listing on a major exchange in the U.S. and you have a recipe for a major influx of capital to help drive the stock beyond its former zenith.
This will also help the Aurora stock forecast in the long term beyond 2018, as recreational marijuana legalization in the U.S. slowly spreads state by state.
With a ticker on an exchange that American investors know and trust, this could uniquely position Aurora Cannabis stock to be one of the marijuana companies of choice to help supply the demand for American weed.
The true extent to which the company will benefit from being on a U.S. exchange will largely depend on how many other Canadian companies join it, however.
Canopy Growth Corp (OTCMKTS:TWMJF, TSE:WEED) has also made its intentions known that it would like to find itself on the NASDAQ, so the window for this move may be short. But should Aurora manage it, it will do wonders for the stock value.
A final bit of news that has followed Aurora Cannabis stock in 2018 revolves around a possible ACB stock split. I covered this earlier in the year and then, same as now, I don’t believe this is in the cards for Aurora.
There’s simply too little incentive to go ahead with a stock split, especially when there are already several events on the horizon that may do far more to boost the ACB stock value.
When it comes to Canada marijuana stocks, I’ve long championed the potential within Aurora.
Aurora Cannabis stock shot up by over 400% since I first began writing about it on Profit Confidential. Then, as now, I believe that it is a strong stock with a lot of room to grow, probably even beyond its former high of $12.00.
That being said, it’s a little bit more fraught times in the marijuana market at the moment as things have come to a slow in 2018.
I believe that the market will likely maintain its muted stance for the next few months, but with the coming of summer, I imagine that will turn around in a hurry and ACBFF stock will be one of the major beneficiaries.