Aurora Cannabis Inc.'s fiscal third-quarter numbers showed "encouraging signs, for a change," according to Cantor Fitzgerald analyst Pablo Zuanic, who reiterated his overweight rating and C$22 ($16) stock price target in a Friday note. The Canadian company posted sales that were 13% above FactSet consensus, with recreational weed up 24% from the prior quarter, "and began to show cost and cashflow improvements that give credence to the notion of positive EBITDA by the Sep quarter and positive cash flow by late FY21," said the note. The company also said that a new $250 million equity facility was a "backstop" and won't be needed if targets are met. Aurora, with 1.2 times net debt to current sales, is not in the same league as Canopy Growth Corp. /zigman2/quotes/200603886/composite CGC +1.30% /zigman2/quotes/202205609/delayed CA:WEED -0.35% or Cronos Inc. /zigman2/quotes/206842762/composite CRON +2.70% /zigman2/quotes/202715342/delayed CA:CRON +0.68% , which have bigger backstops thanks to investments from Constellation Brands Inc. /zigman2/quotes/207737284/composite STZ +1.80% in Canopy's case, and Altria Inc. /zigman2/quotes/208895754/composite MO -0.89% in Cronos' case, said Zuanic. "That is why, we believe, ACB trades at a third of those stocks on EV/current sales, despite having similar or better growth prospects. It is in the "levered league." That said, this is not a company going bust, and we see value," the analyst wrote. Jefferies analyst Owen Bennett said the numbers offered reasons to be optimistic, but said that sales were never the issue for Aurora, but rather its cost structure. "To this, although a headline EBITDA miss today, we think consensus will warm to Aurora's chances of hitting their +ve adj. EBITDA target, especially given commentary around further levers to pull," Bennett wrote in a note. "As before, all eyes remain on 1Q as the big catalyst." Bennett rates the stock as hold with a C$1.00 price target. Aurora's U.S.-listed shares were up 23% premarket but are down 74% in the year to date, while the ETFMG Alternative Harvest ETF /zigman2/quotes/204332491/composite MJ +0.75% has fallen 35% and the S&P 500 /zigman2/quotes/210599714/realtime SPX +1.34% has fallen 12%.