Cronos Group (CRON) has been pretty active in December. The company has delivered a 43% return YTD (year-to-date) as of December 18. On December 7, Altria officially announced that it acquired an ~45% stake in Cronos Group for $1.8 billion. Following the news, Cronos Group received several upgrades from analysts (MJ)—unlike Canopy Growth (WEED), Aurora Cannabis (ACBFF), and Supreme Cannabis (SPRWF).
The consensus target price for Cronos Group in December rose to 19.6 Canadian dollars from 12.8 Canadian dollars a month ago, which represents an increase of 53% month-over-month. Cronos Group closed at 15.6 Canadian dollars on December 18, which leaves room for a 25.6% upside. So, what do analysts recommend for the stock in December?
The overall consensus recommendation from five analysts in December for Cronos Group was a “buy,” which remained unchanged from the previous month. Looking at the above chart, you can see that month-over-month, only one analyst recommended a “strong buy” on the stock. Three analysts recommended a “buy,” while one maintained a “hold” on the stock in December. None of the analysts had a “sell” recommendation on the company.
The bullish sentiment for Cronos Group was mainly driven by its deal with Altria, which would give the former access to resources that would be accretive to the growth.
Next, we’ll discuss Aurora Cannabis.