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Cronos Group’s Ratings: Two Downgrades after Its Earnings

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PI Financial

On March 26, after Cronos Group (CRON) missed the top-line expectations, PI Financial downgraded the company’s rating to “neutral” from its previous “buy” rating. Canaccord Genuity also downgraded the stock to a “sell” from its previous “hold” rating. Cronos Group reported a wider-than-expected loss of 11.4 million Canadian dollars, which missed analysts’ estimate of ~1.7 million Canadian dollars. Let’s look at how the consensus ratings changed after the company’s earnings.

Analysts’ consensus ratings

The current consensus rating for Cronos Group is a “hold.” None of the nine analysts in the above chart recommended a “strong buy” on the stock as of the date of this writing. Among the nine analysts, two recommended a “buy,” four recommended a “hold,” one recommended a “sell,” and two recommended a “strong sell” on the company on March 26. Analysts have turned more bearish on the stock. More analysts recommended a “sell” in the current month.

Among Cronos Group’s peers (MJ), Tilray (TLRY) has a “hold” recommendation, while HEXO (HEXO) and Canopy Growth (WEED) both have a “buy” recommendation in the current month.

Target price

While the consensus recommendation on the stock turned bearish month-over-month, the target price increased from 19.6 Canadian dollars a month ago to 22.3 Canadian dollars in the current month. The target will be achieved over the next 12-month period. On March 26, Cronos Group was already trading well above this target at 27.1 Canadian dollars.

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