What happened

Shares of Aurora Cannabis (NASDAQ:ACB) slid by 5.5% on Monday, following a price target chop from CIBC (NYSE:CM). The Canadian bank reduced its target to $20, quite some distance from the previous $24.

So what

It wasn't immediately apparent why the price target was reduced. Yet even at the lower number, Aurora has significant upside: That $20 figure is nearly double its current price, so CIBC is maintaining its outperform recommendation.

That dynamic, in which expectations are tempered but a generally bullish outlook remains, is not new in the marijuana industry lately. The sector has significant roadblocks, not least of which is the piecemeal legalization of recreational sale and use in the U.S., and the persistent competitive threat of black market products in both Aurora's native Canada and the U.S.

A cannabis bud with smoke emanating from it.

Image source: Getty Images.

On the other hand, numerous pundits and investors are optimistic about the prospect of full legalization under a theoretically more amenable presidency and Senate if the Democrats win one or both this November.

And fundamentals for some top cannabis companies are getting better here and there. Aurora, for one, saw improvements on a quarter-over-quarter basis in both revenue and its bottom line in Q3, although the company's overall performance wasn't impressive.

Now what

Aurora is slated to report its Q4 results on Sept. 29. Investors will be eager to see if the company can keep those revenue-growth numbers up, and continue trimming its net losses.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.