Cronos Group Inc. shares CRON, +2.54% CRON, +2.45% fell 1% Tuesday, after Cowen cut its stock price target to C$17 ($13) from C$21, and said the company has not outlined its path to profitability in Canada and does not have the same scale as rivals Canopy Growth Corp. CGC, +5.51% WEED, +5.63% and Tilray Inc. TLRY, +17.26%. Cronos has told investors it expects a long path to profitability as it builds out its international infrastructure with the $1.8 billion investment received from tobacco giant Altria Group MO, +0.69%. “While U.S. CBD entry via Redwood (Lord Jones) does represent upside tension to our estimates, we do not believe it is enough to warrant a more constructive view on the stock at current multiples, which we think are supported by MO’s clear path to control,” analyst Vivien Azer wrote in a note. “We continue to like the story, as well as management, and would consider taking a positive position at the right valuation.” Azer is sticking with his market perform rating on the stock. Cronos shares have gained 5% in 2019, while the ETFMG Alternative Harvest ETF has fallen 3.3% and the S&P 500 SPX, -0.69% has gained 16%.
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