Company News

BUZZ-Cronos Group: Slips lower on revenue miss, Canaccord says 'sell'

** U.S.-listed shares of Canadian weed company down 3.18 pct premarket at $6.69

** Fifth among biggest pct losers across U.S. exchanges

** Posts Q4 revenue below consensus and meets EPS estimates despite having quarterly sales more than triple

** Canaccord Genuity cuts to “sell” from “hold” on valuation, says Cronos trades ~22.7x its two-year forward enterprise value/EBITDA compared to its peers at 12.2x

** Broker notes, Cronos trades above the top four Canadian licensed producers by market cap at 18.1x and is in line with the largest player in the space, Canopy Growth Corp which trades at 23.9x

** Canaccord expected a higher output and flow through to medical patients from Cronos’ existing infrastructure out of Peace Naturals in Q4; raises PT to C$6.50 from C$6 on Canadian-listed shares

** Among 5 brokers covering Cronos, 3 rate “buy”, 1 “hold” and 1 “strong sell”; Cronos has a mean rating of “hold” and mean PT of $7.95

** Up to Monday’s close, U.S.-listed shares fell 10.6 pct this year while Canadian-listed shares slid further at ~12 pct YTD (Reporting by Shreyashi Sanyal in Bengaluru)