Canadian cannabis stock Aurora Cannabis (TSE:ACB) is stepping up its line of offerings in Australia, and bringing a new set of pastille products for customers down there. The news will prove welcome to consumers, and investors agreed, somewhat. Aurora Cannabis shares were up fractionally in Friday morning’s trading.
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For those who are unable to parse the difference between a dime bag and a bag of frogs, a pastille is actually a kind of pill. It can be either sweet or medicinal, and is made of a thick liquid that is intended to be taken by chewing on it lightly and allowing it to dissolve in the mouth. A cannabis pastille, therefore, is one of these, but infused with cannabis in certain quantities.
Using them with cannabis, meanwhile, allows for a simple oral ingestion process—all you do is chew a candy a bit and allow it to dissolve in your mouth—but also one that allows for “prolonged effects.” This means a particular help with digestive issues, and considering that it is basically a small candy, it becomes extremely discrete and highly portable, making it more available. The down side to that, of course, is that it needs to be even more closely monitored around children.
A Good Time to Ramp Up
New reports, meanwhile, suggest that this is a great time to come out with more products in the cannabis market. The cannabidiol market is projected to hit a whopping $27.57 billion annually by 2032. That means a compound annual growth rate (CAGR) of 16.5% over the next seven years.
And interestingly, the new product lines—like the pastilles at Aurora—are helping to drive this market. As there are more and more product types available, that convinces more customers to get in. Loosening restrictions on the market are also helping, and giving customers more access to it in the first place.
Is Aurora Cannabis Stock Worth Buying?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on TSE:ACB stock based on three Buys and two Holds assigned in the past three months, as indicated by the graphic below. After an 90.41% rally in its share price over the past year, the average TSE:ACB price target of C$9.60 per share implies 15.15% upside potential.
