Cronos Group stock (ticker: CRON) is falling on Thursday, after Cowen & Co. reiterated a wait-and-see stance on the cannabis company following its recent downbeat earnings report.
The Back Story. Wall Street can’t get enough of cannabis, judging from the performances of many marijuana stocks. Cronos is just one example, rising more than 75% since the start of the year and up 171% in the trailing 12-month period. Marijuana use is gaining legal acceptance in more places, there are hopes some lingering banking issues will clear up with new laws, and the stocks are gaining fans among staid institutional investors as well as fellow consumer-staples companies:
Altria Group (MO) invested in Cronos last year.
However it hasn’t all been a smooth ride. Good weed is hard to find, and supply concerns have plagued the industry. Cronos fell after reporting earnings earlier this week, and the stock also took a hit from an analyst downgrade.
What’s New. Cowen & Co.’s Vivien Azer—who sat down with Barron’sto discuss her top cannabis picks—reiterated a Market Perform rating on Cronos Thursday and lowered her price target by $3 Canadian dollars, to C$26. She writes that the company’s results were “marred by supply constraints that fell short of demand.” She writes that much of Cronos’s 2019 performance–and that of its peers–will depend on the second half of the year, as more supply comes online.
Looking Ahead. When Azer spoke with Barron’s, she noted that valuation was one of her big reasons for staying on the sidelines, but she also lowered her estimates today to reflect lower volumes and average selling prices, which will weigh on profitability.
She thinks that throughout the year, supply improvements will come online and help juice revenue. However, she warns that Cronos won’t see material capacity from its GrowCo joint venture with Greenhouse Partners until fiscal 2020.
Cronos is down 2.4% to $17.80 at recent check.
英国考恩公司( Cowen & Co .)在最近发布的业绩报告令人失望之后，重申了对大麻公司的观望态度，该公司股票周四下跌。
（ MO ）去年在 Cronos 投资。
什么是新的。Cowen & Co .的 Vivien Azer 与 Barron's 坐下来讨论她的顶级大麻选择。她重申了 Cronos 星期四的市场表现评级，并将她的目标价下调了3加元，至26加元。她写道，该公司的业绩“受到供不应求的供应限制的影响”。她写道，随着更多供应来自网络，克罗诺斯2019年的大部分表现——以及同行的表现——将取决于今年下半年的表现。
向前看.当 Azer 与 Barron's 谈话时，她指出，估值是她在一旁观望的主要原因之一，但她也调低了今天的估值，以反映交易量和平均售价的下降，这将影响盈利能力。
她认为，在整个一年中，供应的改善将会在网上进行，并有助于增加收入。然而，她警告说，在2020财年之前， Cronos 将不会从与 Greenhouse Partners 的 GrowtCo 合资企业中看到实质性产能。