Aurora Cannabis
Shares of Canada-based pot grower Aurora Cannabis Inc. (NASDAQ: ACB) posted their 52-week high exactly one year ago. Since then, the shares have dropped by nearly 83%. Like its peers, the Edmonton, Alberta-based marijuana grower has been struggling to survive until the U.S. Congress takes action to legalize marijuana. That would remove cannabis from its current position as a dangerous drug and could pump up sales again. Unlike its peers, the company is a serial acquirer. The jury is still out on whether that is a reasonable strategy.
Of 13 analysts covering the stock, 11 have a Hold rating and two rate the shares at Buy or Strong Buy. At a recent price of around $1.30 a share, the implied gain based on a median price target of $1.49 is about 14.6%. Based on the high price target of $3.72, the upside potential for the stock is 186%.
Analysts expect Aurora to report fiscal first-quarter revenue of $40.1 million, which would be up by about 2.8% sequentially but down by 15.5% year over year. The company is expected to report an adjusted loss per share of $0.11, compared to the prior quarter’s loss of $0.16 per share and the year-ago loss per share of $0.19. For the full 2023 fiscal year ending in June, Aurora is expected to post a loss per share of $0.33, smaller than last year’s loss of $0.56 per share, on revenue of $181.19 million, up by about 5.4%.
Aurora is not expected to post a profit in 2023, 2024 or 2024. The enterprise value to sales multiple is expected to be 1.5 in 2023. Based on average estimated sales of $192.83 million and $204.1 million for 2024 and 2025, respectively, the multiple is 1.4 for 2024 and 1.3 for 2025. The stock’s 52-week trading range is $0.98 to $8.69. The company does not pay a dividend. Total shareholder return for the past year was negative 82.6%.
Toast
Since coming public in late September of last year, Toast Inc. (NYSE: TOST) has seen its share price sink by more than 69%. The company operates a cloud-based and digital technology platform for the U.S. and Irish restaurant industries. Since putting up its post-IPO low in mid-May, shares have added about 32%.
When Toast reported better-than-expected second-quarter results in August, it raised full-year guidance. That was a repeat of Toast’s guidance boost after it reported first-quarter results. In a recent upgrade, Mizuho analyst Dan Dolev said Toast could become profitable in 2023, a year ahead of schedule.
Of 17 brokerages covering the stock, 11 have a Buy or Strong Buy rating and the rest rate the shares at Hold. At a share price of around $19.00, the implied gain based on a median price target of $25.00 is 31.6%. Based on the high price target of $29.00, the upside potential for the stock is about 52.6%.
Analysts expect the company to report third-quarter revenue of $720.92 million, up 6.8% sequentially and by 48.2% year over year. Analysts also expect an adjusted loss per share of $0.11, better than the prior quarter’s loss of $0.19 and much better than the year-ago loss of $1.05 per share. For the full 2022 fiscal year, Toast is expected to post a loss per share of $0.38, smaller than last year’s loss of $0.82 per share, on revenue of $2.66 billion, up 55.8%.
Toast is not expected to post a profit until 2024. The enterprise value to sales multiple is expected to be 3.3 in 2022. Based on average estimated sales of $3.53 billion and $4.57 billion for 2023 and 2024, respectively, the multiple is 2.5 for 2023 and 1.9 for 2024. The stock’s 52-week trading range is $11.91 to $61.75. Toast does not pay a dividend, and total shareholder return for the past year is negative 68.7%.
Originally published at 24/7 Wall St.
Sponsored: Tips for Investing
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
