Aurora Cannabis Stock Forecast: Will the Acquisitions Pay Off?

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Aurora Cannabis Stock Forecast

Few companies have hogged headlines in 2018 the way Aurora Cannabis Inc (OTCMKTS:ACBFF, TSE:ACB) has. Aurora has spent the majority of the year aggressively acquiring rival marijuana companies, and this has led to a lot of division surrounding the Aurora Cannabis stock forecast.

On the one hand, you have those who are bullish on the Aurora Cannabis stock forecast precisely because the company is being so aggressive.

To these bulls, its ability to gobble up rivals is not only going to make the market less competitive, but also puts Aurora Cannabis in a position to be one of the dominant forces in the marijuana industry by virtue of its size.

On the other hand, however, you have the bears who see this aggressive acquisition strategy as an exercise in folly that will likely negatively impact the Aurora stock value.

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While both sides have valid points, I err on the side of a positive Aurora Cannabis stock forecast. Why? Because its aggressive strategy is situating it to be a strong performer as the marijuana market opens up.

You see, a major problem the marijuana industry faces today is that companies’ valuations are based on open markets or soon-to-be open markets.

Places like Canada and Germany (which has legalized medical marijuana) are often the only ones that are taken into account when looking at marijuana stock valuations.

But, as we all know, that’s a very myopic view.

The future of the marijuana industry is global. Aurora knows this, and is using the leverage it has now to buy out smaller companies, increasing both its profile and its production capacity.

With that mind, as more markets open up to marijuana (like the U.K. recently discussed regarding medical pot) Aurora is in a prime spot to offer its services and therefore potentially be the first one through the door.

This is a huge advantage over the competition. Not to mention that its prominence will also help it nab further contracts in already open marijuana markets.

As such, the Aurora Cannabis stock forecast is not without its risks, but I do believe that the company’s aggressive acquisition strategies will pay off.

Analyst Take

ACBFF stock has not been the best performer in 2018, but neither has it fared the worst.

While you’d like to see gains akin to those made by Canopy Growth Corp (NYSE:CGC), Aurora Cannabis stock is angling for big future moves with its numerous acquisitions.

It is a risky play that could backfire if we don’t see the expansion we expect in the marijuana market. But the way the market is heading, I believe that the Aurora Cannabis stock forecast is strong, with the risk well outweighing the potential rewards.