Based on MorningStar's full report provided by RobinHood related to ACB, it seems that their biggest risks will be competition (un-patented processes on ACB's side) and regulation (can hinder expansion into other countries/regions, but it can also have the positive effect of allowing companies like ACB to thrive given their foothold on the market).
ACB has the highest profit margin that MorningStar has reviewed in the cannabis industry. Their current state of not having a strong pharmaceutical partner is a benefit because in the coming years more people will distrust the pharmaceuticals. As ACB continues to find partners and expand, they will be aware of this and likely won't get too much into the drug industry without losing their foothold as a reputable natural medicine.
The black market is not a risk to ACB given my take on the matter, since professionals, middled-aged folks, and students all want quality cannabis without the underground uncertainty which it comes with.
Although I've never invested in a cannabis company before, I feel comfortable with holding for the next few years.
My research was as follows:
"The 17 analysts offering 12-month price forecasts for Aurora Cannabis Inc have a median target of 4.52, with a high estimate of 5.30 and a low estimate of 2.10. The median estimate represents a +84.29% increase from the last price of 2.45." - CNN Business
RobinHood's fair value of $8.50 also played into my pick.
ACB has the highest profit margin that MorningStar has reviewed in the cannabis industry. Their current state of not having a strong pharmaceutical partner is a benefit because in the coming years more people will distrust the pharmaceuticals. As ACB continues to find partners and expand, they will be aware of this and likely won't get too much into the drug industry without losing their foothold as a reputable natural medicine.
The black market is not a risk to ACB given my take on the matter, since professionals, middled-aged folks, and students all want quality cannabis without the underground uncertainty which it comes with.
Although I've never invested in a cannabis company before, I feel comfortable with holding for the next few years.
My research was as follows:
"The 17 analysts offering 12-month price forecasts for Aurora Cannabis Inc have a median target of 4.52, with a high estimate of 5.30 and a low estimate of 2.10. The median estimate represents a +84.29% increase from the last price of 2.45." - CNN Business
RobinHood's fair value of $8.50 also played into my pick.