Aurora Cannabis Inc. shares were in focus again Thursday, as investors continued to digest weaker-than-expected earnings and the company’s plans to grow its business.
Chief Executive Terry Booth told analysts on Wednesday’s earnings call that while wellness drinks are likely to become a success, he does not expect cannabis drinks to be a big market once derivatives are legalized in Canada in October. The market for intoxicating cannabis-based drinks has not proven to be popular anywhere, he said.
Aurora is expecting the European market to become a big draw for Canadian companies, given that there is currently little competition and limited supply. The company has investments in Italy, Germany, Malta, Portugal, the United Kingdom and the Netherlands and pointed out that there were only three companies that were awarded contracts to distribute cannabis in Germany.
Aurora ACB, +0.46% ACB, +0.34% Chief Corporate Officer Cam Battley talked to MarketWatch’s Max A. Cherney after the call to outline the company’s thinking about its future. For more, read:Where Aurora sees cannabis opportunity beyond selling buds in Canada
GMP Securities analyst Martin Landry noted that Aurora had the highest international sales of cannabis in the first quarter, at C$4 million, putting it in a strong position versus peers.
“With a presence in 24 countries and two facilities with an EU Good Manufacturing Practice certification, Aurora is well positioned to continue to grow its international sales and capitalize on the market opportunity which could dwarf the domestic market over time,” he wrote in a note Thursday. Landry rates Aurora a buy with a C$15 stock price target that is about 75% above its current trading level.
In regulatory news, a bill was