What happened Shares of Aurora Cannabis (NYSE: ACB) sank 6.6% on Friday after analysts at Jefferies downgraded the popular marijuana stock. So what Jefferies lowered its rating on Aurora's stock from hold to underperform. The investment bank says the recent surge in Aurora's share price is too much, too fast. "We think near-term sales and [gross margin] headwinds are not fully appreciated, while celebrating a hiatus on further dilution is shortsighted," Jefferies analyst Owen Bennett said. Bennett believes Aurora will eventually need to dilute shareholders again by selling more stock in order to shore up its dwindling cash reserves. In turn, he expects the stock to surrender some of its gains in the coming quarters. Aurora Cannabis gave back some of its recent stock price gains on Friday, following cautionary comments from Jefferies analyst Owen Bennett. Image source: Getty Images. Now what Bennett did raise his target price for Aurora's shares from $8.57 to $10, in order to account for the marijuana producer's recently announced acquisition of Reliva, a popular retail cannabidiol (CBD) brand in the U.S. However, he questioned the timing of the deal and whether Aurora will be able to fully support Reliva's expansion. "The CBD space is experiencing significant headwinds currently ... and the [balance sheet] does not afford investment behind the purchase," Bennett said. Bennett's new $10 target price represents potential downside of 37.5% for Aurora's investors, based on the stock's current price of $16.01. 10 stocks we like better than Aurora Cannabis Inc.When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Aurora Cannabis Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of April 16, 2020 Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.Source