Bank of America Securities analyst Lisa Lewandowski reiterated a Sell rating on Cronos Group (CRON – Research Report) yesterday and set a price target of $1.78.
Lisa Lewandowski’s Sell rating for the Cronos Group is based on a multitude of factors. Despite Cronos’ record 3rd quarter net sales and robust liquidity, the future profitability and changes in the regulatory environment in key markets is uncertain, which casts a shadow on the stock. The company’s cost-cutting programs and product innovation have been commendable, but the overall market and regulatory forces are exerting significant pressure on the sector’s valuation.
Moreover, Lewandowski believes the company’s path to profitability not only includes cost savings but also regulatory changes in crucial markets, which is currently uncertain. Despite an improved sales outlook and the stock trading at a discount to peers, she maintains an Underperform rating. The ambiguity over future profitability and regulatory changes, combined with the pressure on the sector’s valuation, leads to her expectation of continued pressure on Cronos Group’s stock.
According to TipRanks, Lewandowski is ranked #889 out of 8489 analysts.
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Cronos Group (CRON) Company Description:
Cronos Group, Inc. engages in the production and sale of cannabis in federally legal jurisdictions, including Canada and Germany. Its portfolio includes Peace Naturals, Original BC (OGBC) and Whistler Medical Marijuana Company (WMMC). The company was founded by Lorne Michael Gertner and Paul Rosen on August 21, 2012 and is headquartered in Toronto, Canada.
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