Here’s what they are saying
This was Wall Street’s most-hated cannabis stock in 2019
For much of 2019, Cronos Group (NASDAQ:CRON) proved to be Wall Street’s most-hated pot stock. At one time last year, Cronos had four Wall Street ratings that were the equivalent of a sell.
On one hand, Cronos garnered a lot of attention after snagging a $1.8 billion equity investment from Altria Group, which closed in March. It had less than $25 million in cash and cash equivalents on its balance sheet prior to the closing of this deal, meaning that Cronos essentially put any sort of cash concerns in the rearview mirror by completing this equity investment. Since closing its deal, Cronos has made one notable acquisition — a $300 million deal to buy Redwood Holdings, the owner of the Lord Jones brand of CBD-infused beauty products.
However, Cronos’ stock more than doubled in a span of two months between December 2018 and February 2019 and it didn’t sit well with Wall Street — especially considering the supply issues Canada was contending with. Noting that Cronos was significantly behind its peers in the production and sales departments, most Wall Street firms tempered their expectations for the company or flat-out rated it as a sell.
But Cronos Group shareholders will be happy to know that their company is no longer the most hated on Wall Street. That title now belongs to Aurora Cannabis (NYSE:ACB), which has accrued three sell ratings and a price target of $0 from one off-Wall Street analyst.