Bank of America Securities analyst Lisa Lewandowski maintained a Sell rating on Cronos Group (CRON – Research Report) yesterday and set a price target of $2.00.
Lisa Lewandowski’s rating is based on several key considerations. Despite Cronos Group’s notable sales growth in 2024, including a 35% increase and strong performance in markets like Israel and Canada, the company faces significant capacity constraints that are expected to persist until the second half of 2025. These constraints have led to a downward revision of sales forecasts for 2025 and 2026, which impacts the company’s growth outlook.
Additionally, while Cronos Group has made progress in reducing costs and improving gross margins, its path to profitability remains uncertain, with positive adjusted EBITDA not expected before 2026. The company’s valuation is also under pressure due to the lack of federal cannabis reform in the United States, which limits its market opportunities compared to peers with potentially quicker access to the U.S. market. As a result, Lewandowski maintains a Sell rating, reflecting concerns over the company’s ability to achieve sustainable profitability and valuation improvements in the near term.
According to TipRanks, Lewandowski is a 5-star analyst with an average return of 20.1% and a 78.67% success rate.