In a recently released analyst research report, Eight Capital Corp. analyst Graeme Kreindler issued a bearish sell rating on shares of Canadian licensed cannabis producer CannTrust Holdings Inc. (NYSE:CTST) (TSX:TRST) with a price target that suggests a lot more downside to come.
This update to Kreindler’s CannTrust guidance comes on the heels of recent non-compliance issues at the company, including observations by regulator Health Canada regarding the growing of cannabis in five unlicensed rooms and inaccurate information provided to the regulator by CannTrust employees.
Graeme Kreindler’s new TRST price target of $2.00 CAD per share implies a potential downside of approximately 31.03% based on the last traded price of $2.90 CAD per share on the TSX.
Even though CannTrust has since appointed a Special Committee of its Board of Directors and a financial advisor to assist in a review of strategic alternatives for the company, according to AnalystRatings, “Analyst Graeme Kreindler from Eight Capital remains bearish on the stock.”
According to the company’s recent press release, these alternatives “could include, among other things, a sale of the Company or a portion thereof, a strategic investment, a business combination, changes to the Company’s operations or strategy, or continuing to execute on the Company’s current business plan.”
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