Canaccord Initiates Aurora Cannabis Inc. (ACB) With C$10 Price Target

Aurora Cannabis Inc. (NASDAQ:ACB) is among the 11 Best Pot Stocks to Buy According to Hedge Funds.

On February 17, Canaccord initiated coverage of Aurora Cannabis Inc. (NASDAQ:ACB) with a Buy rating and C$10 price target. The analyst characterizes the company as the leading medical cannabis operator in Canada and a foremost participant in key international medical markets, including Germany, Poland, Australia, and the United Kingdom. According to the initiation note, Aurora’s strategic domestic pivot toward a medical-first model has enabled expansion into structurally higher-margin international markets, where gross margins are approximately 2.5 times higher on average than those generated in its Canadian medical business. The firm views this mix shift as a durable driver of profitability and earnings quality.

Aurora Cannabis Inc. (NASDAQ:ACB) reported Q3 fiscal 2026 results on February 4 and reaffirmed its medical-first strategic direction. Management guided fiscal 2026 global medical cannabis net revenue growth of 10%–15% to $269–$281 million. Medical revenue represented approximately 81% of total net revenue and roughly 95% of adjusted gross profit in Q3, underscoring the segment’s earnings leverage. The company forecast consolidated adjusted EBITDA of $52–$57 million, representing 5%–10% year-over-year growth, alongside sustained strong adjusted gross margins (62% consolidated and 69% for medical in Q3).

Plant propagation revenue is expected to follow typical seasonality, with 65%–75% generated in the first half of the calendar year. Management noted one-time Q4 cash costs associated with exiting select Canadian consumer markets but expects EBITDA improvement thereafter. Aurora also filed an at-the-market program for up to $100 million to fund accretive initiatives such as cultivation expansion and M&A. The quarter closed with $154 million in cash and no cannabis-related debt, reinforcing balance sheet flexibility.

Founded in 2006 and headquartered in Alberta, Canada, Aurora Cannabis Inc. (NASDAQ:ACB) cultivates, produces, and distributes medical and recreational cannabis products under federal licensing frameworks.

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