Aurora Cannabis Inc

ACB: XTSE (CAN)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	CAD 96.00	Msgb	Rfm

Aurora’s Losses Narrow in Q1, but We’re Skeptical of Its Guidance for Positive EBITDA Next Quarter

Kristoffer Inton

Nov 11, 2022

Aurora’s revenue declined. Average price per gram rose to CAD 5.32 and gross margin expanded to 50%, up from CAD 5.10 and from 47%, respectively. Additionally, continued cost-cutting efforts kept overhead expenses in check, allowing adjusted EBITDA losses to narrow to CAD 8.7 million, compared with CAD 11.5 million in the fiscal fourth quarter. We’ve maintained our forecasts and our fair value estimates of $4 and CAD 5 per share for no-moat Aurora. Shares trade in 4-star territory, but we reiterate our Extreme Uncertainty Rating on Aurora given the ongoing threat of dilution to existing shareholders.

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