Canaccord‘s Matt Bottomley just upgraded shares of Cronos Group Inc. (TSX:CRON) (NASDAQ:CRON) from a “Sell” to a “Hold” alongside a price target of $7.50 CAD per share, equivalent to roughly $5.71 USD. Bottomley’s price target is $2.50 CAD per share lower than the $10.00 CAD per share price target issued last month by GMP’s Martin Landry.
He believes Cronos has added a number of “compelling” strategic initiatives, such as a supply agreement into Poland’s recently legalized medical market; a partnership with MedMen in Canada; the creation of Cronos GrowCo; and the take-or-pay supply agreement with Cura Select of the U.S.
Potential Downside
Context
Earlier this week, Cronos Group released financial results for the second quarter ended June 30, 2018, which showed a year-over-year sales increase of over 400%.
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