stock has plunged over the past several months, but the marijuana stock is now fairly valued, according to an analyst at BMO Capital Markets.
The back story. Cronos stock (ticker: CRON) has traded as high as $25.10 and is up 6% year to date. But shares of the Canadian cannabis grower have struggled since the start of April, falling more than 40% through Wednesday’s close.
News of better marijuana sales, disclosed in an earnings report last month, didn’t help much. Some analysts have been unimpressed by Cronos’s market penetration, compared with its Canadian peers.
What's new. BMO Capital Markets analyst Tamy Chen thinks Cronos may fallen enough.
Chen wrote in a note on Wednesday that after recent drops, Cronos is trading in line with her valuation of its Canadian peers, at 13 times her estimate for revenue in 2020.
“We previously downgraded the stock as its valuation had increased to ~30x 2020E revenues, which we considered to be an outlier both in the context of our coverage (15-20x revenues at the time) and our view that the company’s production ramp was behind vs. some of the other peers,” she wrote.
Cronos stock was up 2% to $11.26 in premarket trading Thursday.
Looking ahead. Chen upgraded her rating on the stock to Market Perform (Speculative) and lowered her price target to 16 Canadian dollars, or about US$12.12, from C$17.
She wrote that she is Neutral on the stock because the company’s production and recreational sales volumes are somewhat behind some of the other licensed producers in Canada.
She added that while the company’s investment in vape devices and its partnership with
(MO) could help Cronos stand out when “value-add” products such as vapes, edibles, and cannabis-infused beverages are approved for sale in Canada, she says it isn’t clear when those products will hit shelves and how the initial cost of producing them could affect margins.
BMO Capital Markets 的一位分析师表示，过去几个月来，大麻类股票大幅下跌，但大麻类股票目前的估值相当高。
后面的故事。Cronos 股票（股票代码： CRON ）的交易价格高达25.10美元，今年迄今上涨了6%。但自4月初以来，这家加拿大大麻种植者的股价一直在挣扎，截至周三收盘时，该公司股价已下跌逾40%。
上个月公布的一份盈利报告显示，大麻销售情况好转的消息并没有起到多大作用。与加拿大同行相比，一些分析师对 Cronos 的市场渗透率并不感兴趣。
什么是新的。BMO 资本市场分析师 TamyChen 认为 Cronos 可能跌得足够厉害。
“我们之前降低了该公司的股票评级，因为它的估值已上升至30x2020E 收入，我们认为这在我们的覆盖范围（当时为15-20x 收入）和我们认为该公司的生产斜坡度落后于其他公司的情况下都是一个离群值。她写道。
周四收盘前交易中, Cronos 股价上涨2%,报11.26美元.
她补充说，虽然该公司对 vape 设备的投资及其与
（ MO ）可以帮助 Cronos 脱颖而出时，“增值”产品，如 vapes ，食用品，和大麻精饮料被批准在加拿大销售，她说，目前还不清楚这些产品何时会上架，以及生产这些产品的初始成本如何影响利润率。