ACB stock popped 80% in the first quarter, as investors reacted to a string of strategic developments. Top on the list was Aurora Cannabis's (TSX:ACB) (NYSE:ACB) expansion into Europe as the company continued to explore new opportunities and markets for its products.
Expanding Fast
Partnerships and acquisitions have helped Aurora Cannabis strengthen its prospects and competitive edge in this multi-billion dollar industry.
Aurora Cannabis has since set foot in Portugal with the acquisition of Gaia Pharma, a licensed applicant. With the acquisition, Aurora Cannabis has established a local facility that will produce medical cannabis and other derivative products to service a growing demand here.
ACB stock sentiments also inched higher on the company commencing cannabis oil sales in Germany through local pharmacies. The company has since emerged as a market leader thanks to the supply of dried cannabis flower via Aurora Deutschland.
ACB stock later ticked higher following the acquisition of Whistler Medical Marijuana. With this acquisition, the company gains access to an iconic cannabis brand as well as premium and differentiated organic certified product suite.
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Buoyed by a string of positive developments that underscore long-term growth, investment firm Cowen has initiated coverage of ACB stock. The firm has a share price target of $10 on the stock
“The company's large cultivation footprint, capable of producing over 575,000 kg, provides ACB with the necessary infrastructure to weather early storms in adult use while continuing to grow higher-value revenues in the medical market,” Cowen remarked in a research note to investors.
Management Enhancement
Aurora Cannabis has, in the recent past, expanded its management team as it seeks to focus on strategic initiatives. Carey Squires joins the company as the executive vice president of corporate development and strategy.
Billionaire Nelson Peltz has also joined the company’s hierarchy as a strategic advisor. Peltz will be looked upon to explore potential partnerships to support the company’s growth strategy.
Aurora's improving underlying fundamentals, as well as its strategic partnerships and initiatives, explain why ACB stock has been on an excellent run in recent months.
Featured image: Canva
