SNDL - Aurora Cannabis downgraded by MKM as cannabis stock volatility picks up

MKM Partners is cutting its rating on Aurora Cannabis (ACB) -4%, citing a tough path for operating income turning positive.MKM analyst Bill Kirk is downgrading the stock to Sell from Neutral, keeping the price target at (U.S. $7).ACB shares are currently trading around $14, having come close to $19 in the retail-fueled rallies in the group."Aurora's 2Q'21 (ended December 31) is concerning on two fronts: 1) excluding provisions, Aurora's consumer cannabis net revenue (C$28.6mn) was down 17% from the prior quarter and at the lowest level since 2Q'19 (the first quarter of legal recreational sales in Canada); and 2) their guided 2Q'21 positive adjusted EBITDA failed to materialize and showed sequential deterioration from 1Q (-C$12.1mn vs. -C$10.5mn in 1Q),” Kirk writes.“We don't see a cost-cutting or growth path that gets to near-term positive EBITDA.”Cannabis stocks are seeing bigger swings now regular trading has begun.Tilray (TLRY) +7%, for example, has been up

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Aurora Cannabis downgraded by MKM as cannabis stock volatility picks up