“Market perform” for Cronos Group
On March 5, Cowen initiated coverage on Cronos Group (CRON) with a “market perform” rating. Cowen also initiated coverage on Aurora Cannabis (ACB) with an “outperform” rating. Cowen put a target price of 29 Canadian dollars on Cronos Group. Cowen’s optimism about Cronos Group comes from its low-cost production operations.
Read Will Marijuana Be a Key Issue in 2020 Elections? to learn more.
As of March 5, analysts’ consensus recommendation for Cronos Group was a “hold.” Among the eight analysts covering the stock, four recommended a “buy,” three recommended a “hold,” and one recommended a “sell.”
Consensus target price
On March 5, the consensus target price on Cronos Group was 20.8 Canadian dollars, which was much lower than Cowen’s target price of 29 Canadian dollars. Cronos Group closed well above the consensus target price at 28.6 Canadian dollars on March 4—close to Cowen’s target. Cowen thinks that Cronos Group is priced fairly. Other cannabis companies (MJ) including Canopy Growth (WEED) had a “buy” and HEXO (HEXO) had a “buy.”
To learn more, read Analysts’ Ratings for KSHB, IIPR, and Green Thumb Industries.