Cronos Group (CRON) reported its first-quarter earnings on May 9. The company’s net revenues were 6.9 million Canadian dollars—a rise of ~133% YoY (year-over-year) from 2.9 million Canadian dollars. Excluding excise taxes, the company’s net revenues rose 120% during the first quarter. After the company reported its earnings, the stock fell ~8% at the day’s closing. The Horizon Marijuana Life Sciences ETF (HMMJ) lost ~3% during the day. The company’s earnings disappointed Wall Street. Analysts rushed to cut their target prices on Cronos Group.
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After Cronos Group’s earnings, PI Financial cut its target price to 22 Canadian dollars from 24 Canadian dollars. Cowen and Company cut its target price to 21 Canadian dollars from 26 Canadian dollars. The overall consensus target price on the company fell t0 20.8 Canadian dollars from 22.8 Canadian dollars the previous month—a cut of 8% in the company’s target price.
Analysts’ consensus ratings
Analysts’ consensus rating on Cronos Group was a “sell.” Two analysts recommended a “strong sell,” while three analysts recommended a “sell” on the stock based on the outlook for the next 12-month period. The number of analysts recommending a “buy” remained at one, while five analysts continued to have a “hold” recommendation on the stock. PI Financial had a “neutral” rating, while Cowen and Company had a “market perform” rating on Cronos Group.