When Vivien Azer speaks, investors pay attention. And the managing director and senior analyst at Cowen Inc. yesterday said Aurora Cannabis Inc (TO:ACB) was a top pick in the burgeoning marijuana sector. And, not surprisingly, the market reacted.
Aurora Cannabis stock gained 12.4 percent on the day to close at $10.79. That probably wasn’t all Azer’s doing, but it didn’t hurt. So far this year, the Edmonton-based pot producer saw its stock rise 59.14 percent.
Cowen Inc. is a New York-based independent multinational investment bank, where Azer specializes in the beverage, tobacco and cannabis sectors. She is the first Wall Street analyst to cover the developing weed market. Yesterday, she pointed to good growth opportunities in the Canadian recreational marijuana space and the large growth potential in the global market for medical marijuana.
According to reports, she gives Aurora an outperform rating and a $14 price target, which translates into a roughly 46-percent increase from its current trading mark.
Azer estimates the recreational and medical marijuana market will reach $12 billion by 2025, and that Aurora is well positioned with its production facilities to be a key player in the global markets, which is estimated to hit the $31-billion mark within five years.
Aurora, which operates in 24 countries, has the largest global footprint of all the cannabis companies. It is also, according to Cowen’s analysis, expected to generate revenues of $305 million this year, increasing to $742 million in 2020, and upwards to about $1.34 billion by 2022, according to Bloomberg. Azer is predicting it could be the first Canadian marijuana company to become profitable.