Relative Strength Index: The Relative Strength Index (RSI) is a known measure used in technical analysis to estimate whether a security is currently “overbought” or “oversold”. This puts price movements in relation to time. We consider the RSI on a 7- and 25-day basis for Aurora Cannabis. Let’s start with the 7-day RSI, which currently stands at 99.46 points. This means that Aurora Cannabis is currently overbought. The share is thus classified as a “sell”. What about the 25-day RSI? As with the RSI7, Aurora Cannabis is overbought on this basis (value: 74.41). The security is thus also rated “sell” for the RSI25. The bottom line is that Aurora Cannabis is rated “sell” for this point in our analysis.
Technical analysis: Trend-following indicators should indicate whether security is currently in an upward or downward trend (see Wikipedia). The moving average is one such indicator, we look at the 50 and 200-day averages here. First, we look at the longer-term average of the last 200 trading days. The current price for the Aurora Cannabis share is 10.01 CAD. The last closing price (CAD 8.44) was thus significantly lower (-15.68 percent deviation in comparison). On this basis, Aurora Cannabis receives a “sell” rating. Now let’s take a look at the shorter 50-day average: For this (CAD 9.76) the last closing price is also below the moving average (-13.52 percent deviation). The Aurora Cannabis share is therefore also awarded a “sell” rating on this short-term basis. In total, Aurora Cannabis is given a sell rating based on trend-following indicators.
Fundamental: With a price-earnings ratio (P/E ratio) of 284.45, the Aurora Cannabis share is 119 percent higher on the basis of today’s quotations than comparable companies from the pharmaceutical industry (129.99) are valued. This key figure, in turn, signals an undervaluation. Thus, from the perspective of fundamental analysis, the classification “sell” emerges.
Analyst assessment: In the last twelve months, a total of 8 analyst ratings were given for the Aurora Cannabis share. Of these, 5 were “buy”, 3 “hold” and 0 “sell”. In summary, this results in a “buy” rating for the Aurora Cannabis share. There are no analyst updates on Aurora Cannabis from last month. The ratings carried out by the analysts resulted in an average price target of CAD 12.4. The security thus has an upward potential of 46.92 percent, based on the last closing price (CAD 8.44). This leads to a “buy” recommendation. The bottom line is that Aurora Cannabis receives a “buy” rating for this point in the analysis.