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In a recently released analyst update, GMP Securities‘ Managing Director of Equity Research for Special Situations and Healthcare, Martin Landry, reiterated his neutral Hold rating on shares of Cronos Group Inc. (NASDAQ:CRON) (TSX:CRON) with a lowered price target.
Why Landry Lowered His Cronos Price Target
This analyst update comes just after Cronos announced financial results for the fourth quarter and full year ended December 31st, 2018. On a top-line basis, Cronos Group’s Q4 was a disappointment. Wall Street analysts surveyed by FactSet were expecting revenues of $10.4 million CAD, but Cronos only “logged fourth-quarter gross sales of C$5.6 million.”
While Wall Street analysts were expecting losses of $-0.01 on an EPS basis, they were not expecting losses of $11.8 million CAD, equivalent to losses of just over $8.81 million USD, which amounted to $-0.06 per share.
Dropped from his prior price target of $24.00 CAD per share, Martin Landry’s new price target of $23.00 CAD per share implies a potential downside of approximately 7.61% based on the last traded price of $24.75 CAD on the TSX. Other analysts seem to agree.
PI Financial Corp. equity analyst, Jason Zandberg, CFA, also just downgraded his rating on shares of Cronos Group to a neutral Hold rating. Additionally, Canaccord Genuity Corp. Equity Research Analyst Matt Bottomley just recently downgraded his rating on shares of Cronos from a Hold to a Sell with a bearish price target to the downside.
Conclusion
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