Will Aurora Stock Double Next Year? Rich Says “Yes”


Aurora Cannabis Inc. (TSX:ACB) (NYSE:ACB) has earned its place at the top of the cannabis industry. The Alberta-based company is known for its remarkably high funded production capacity in excess of 625,000 kg a year. It also has operations in 25 countries across five continents and is diversified across every key segment of the cannabis value chain.

It’s no wonder, then, that cannabis analysts have always considered ACB one of the most promising pot stocks available. And, of course, Rich from RichTV Live is no exception. He’s been a fan of Aurora for years and recently called the company a “very safe bet” for investors.

“Your boy was talking about Aurora Cannabis when they were under $2.00, so I’m not surprised when analysts are now saying that Aurora is going to double next year,” says Rich.

Big Projections for Aurora

According to Canaccord’s Matt Bottomley, Aurora’s stock price will double in value in 2020.

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ACB stock opened on the TSX today at $6.70, and accordingly, Bottomley set a price target for Aurora at $13.50 CAD.

A simple examination of ACB’s history on the TSX reveals how promising Bottomley’s prediction is. Two years ago, Aurora stock hovered around $2.75. But in the three months between November 2017 and January 2018, the price skyrocketed all the way up to $14.79.

ACB didn’t stay there for long but did perform admirably for a while before sinking below $6.00 last summer. Once again, over the next three months, the stock exploded to $15.08 by mid-October before settling back down to its earlier price soon afterward.

What might seem like stock chaos is actually a reliable trend. Luckily, Rich helps makes sense of these numbers.

“Historically, [ACB] has these crazy runs and these peaks, but it doesn’t stay there for long. It’s literally there for like a day, and then it always comes back down,” explains Rich. “So yes, I think it’s going to double, but I doubt that it’s going to stay at $13.50 when it gets there.”

Essentially, watchers of ACB must be quick on their feet, and can’t be overly attached to the company. They’ve got to watch for the peaks, but still get out while the going’s good.

“As an investor, you have to realize that you can buy Aurora at $6.70, but maybe put your price target or your sell at $13.00,” Rich continues. “So when it hits that number you can exit, and you’re out, and you win.”

Factors Behind the Predictions

It’s worth noting that Bottomley’s prediction comes amidst some humbling results for the world’s second-largest cannabis company. Aurora recently walked back its forecasts of profitability in 2019, pushing that goal to next year. Since that announcement, which was a part of the company’s Q4 financial report, ACB stock has tumbled nearly 25%.

But as the price goes down, promising future prospects present investors with a rare buying opportunity. And Aurora’s got prospects in spades.

Upcoming “legalization 2.0” looks like it’s going to be a major catalyst for Aurora. By December, companies can legally sell cannabis edibles, beverages, and other cannabis derivative products. Not only is this expected to boost the entire industry, but it should also particularly move the needle for companies ready to capitalize like Aurora.

What do you think? Will Aurora double next year? Or will it continue under-performing in 2020 as it has in 2019? Let us know your thoughts in the comments below.

Featured image: Canva

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