Ahead of its fiscal 2023 Q1 earnings on Aug. 9, Canaccord Genuity has upgraded Canadian cannabis company Cronos Group (CRON) to buy from hold citing favorable cash reserve an anticipated boost in sales.
The first has a price target of C$5 (~32% upside based on Wednesday's closing price on the Toronto Stock Exchange).
Canaccord Genuity is forecasting FQ1 2023 sales of US$26.9M, which would be a 7.6% quarter-over-quarter increase. The firm also sees adjusted EBITDA loss of US$17.2M, an improvement from an US$18.9M loss in FQ4 2022.
Analyst Matt Bottomley noted that Cronos (CRON) currently trades at 1.7x to its 2022 estimated EV/EBITDA, a discount to other Canadian marijuana businesses.