Unlike Tilray Inc. (TLRY), which received multiple downgrades after reporting earnings, Cronos Group Inc. (CRON.TO) (CRON) has received several price targets hikes after published fourth quarter revenues that exceeded Wall Street’s expectations.
The broker-dealers that raised price targets on Cronos are Cowen and Company, Stifel, Cormark Securities, and PI Financial. The banks raised price targets to $14 from $8 (CAD), to $12 from $8.25 (CAD), to $9 from $7.50 (USD), and to $10 from $7.50 (CAD) respectively. At current levels, Cronos is trading above Stifel’s price target and is barely trading above the price target that was issued by Canaccord.
While Cowen and Company, Stifel, Cormark Securities, and PI Financial raised their respective price targets on Cronos, CIBC lowered its price target to $11 from $12.50 (USD). Although the broker-dealer lowered its price target on the Canadian cannabis producer, it is the only updated price target to be trading below the current level and we find this to be worth noting.
Unlike Cronos, Tilray did not receive the same type of love from the broker-dealer community. Following a lackluster earnings report, Tilray was downgraded by two broker-dealers and we found this to be significant.
During the quarter, Tilray recorded a $3 million net loss on $56.6 million of revenue. For the entire year, the Canadian cannabis producer had a $10 million net loss on $210 million of revenue. While these numbers showed impressive growth, analysts are more interested in the closing of the Aphria (APHA.TO) (APHA) mega-merger and expect the completion of the deal to serve as a catalyst for growth.
After reporting fourth quarter and full year financial results, Tilray was downgraded by two broker-dealers, Piper Sandler and Benchmark. The downgrades followed a substantial move to the upside, and this is a trend that we will be following closely ahead of the closing of the Aphria merger,
Going forward, we believe there will be several winners to come out of the Canadian cannabis sector. If you are interested in learning about who we consider to be a leading Canadian Licensed Producer, please send an email to email@example.com with the subject “Leading Canadian Licensed Producers” to be added to our distribution list.