ACB - Why Aurora Cannabis American Airlines Group and Construction Partners Slumped Today
Wall Street didn't have a good start to the week on Monday. Investors weren't happy to learn about massive explosions linked to a drone attack in Saudi Arabia, and fear about global energy supply sent crude oil prices soaring. That was good for energy stocks, but it made most market participants nervous about whether the vulnerable economy will be able to sustain any further pressure. Some companies saw steeper declines in their share prices for a variety of reasons. Aurora Cannabis (NYSE: ACB), American Airlines Group (NASDAQ: AAL), and Construction Partners (NASDAQ: ROAD) were among the worst performers. Here's why they did so poorly.
Shares of Aurora Cannabis dropped more than 8% after the Canadian marijuana stock got poor comments from analysts. Stifel cut its rating on the cannabis specialist from hold to sell, reducing its price target from 7 Canadian dollars to CA$5, or about $3.75. Stifel believes that marijuana investors are generally disappointed with how the sector has performed lately, and that might make it harder for Aurora to get the financing it'll need in order to achieve its global expansion goals. In the absence of a major catalyst, such as complete legalization of marijuana across the U.S. market, Stifel's finding it hard to see any reasons for Aurora shareholders to be optimistic in the near term.
Image source: Aurora Cannabis.