Aurora Cannabis share price up 11% after hiring Nelson Peltz


Jefferies Financial Group restated a "buy" rating and issued a C$12.00 price target on shares of Aurora Cannabis in a report on Monday, February 25th.

Cannabis stocks continued to grow Wednesday as United States markets surged into positive territory.

Mr. Peltz, added, "I believe Aurora has a solid execution track record, is strongly differentiated from its peers, has achieved integration throughout the value chain and is poised to go to the next level across a range of industry verticals". In addition, Peltz received options to purchase almost 20 million common shares of Aurora's stock at CAD $10.34 (USD $7.76).

The billionaire Nelson Peltz is getting into the cannabis business. Aurora is a Canadian producer of marijuana that is listed in both Toronto and NY.

Peltz, who is worth $1.6 billion according to Forbes, is the CEO and a founding partner of Trian Fund Management.

An institutional investor recently bought a new position in Aurora Cannabis stock. In the past, the investor has shaken up consumer packaged goods companies such as Procter & Gamble (PG), Kraft Heinz (KHC) predecessor H.J. Heinz, and Mondelez International (MDLZ)-all in the path that cannabis companies want to follow, as weed becomes a mainstream product like alcoholic beverages. Cowen restated an "outperform" rating and issued a C$14.00 price target on shares of Aurora Cannabis in a report on Tuesday, March 5th.

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"We look forward to working with Nelson to further extend our global cannabis industry leadership by aligning Aurora with each of the major market segments cannabis is set to impact", said Aurora CEO Terry Booth in a statement.

Aurora, the second biggest cannabis producer by market value, has also been looking beyond recreational marijuana to drive sales, especially after the legalization of hemp, which was part of 2018 US farm bill.

Bringing in the high-profile adviser increases the likelihood of strategic partnerships for Aurora, said Martin Landry, an analyst with GMP Securities. "The company's large cultivation footprint, capable of producing over 575,000 kilograms, provides Aurora with the necessary infrastructure to weather early storms in adult use".

Quebec-based pot producer Hexo buying Newstrike Brands, the cannabis company backed by The Tragically Hip, in an all-stock takeover valued at $263 million.

Canada has become a launching pad for the recreational pot industry since it legalized cannabis a year ago. Year-to-date, ACB has gained 75.00%, versus a 12.56% rise in the benchmark S&P 500 index during the same period.