During the last reported quarter, ret revenues had soared 248% to hit C$5.6 million, on higher shipments to the Canadian adult-use market and growth in cannabis oil sales. Investors will be expecting to see the strength in cannabis oil and adult-use market to continue into the first quarter.
CRON is one of the pot stocks that has been extremely rewarding to its loyal investors. The stock has given a staggering 182% returns in the trailing 52 weeks, even though it has seen a fair share of fluctuations. Since the beginning of this year, the stock has climbed 40%.
Analysts also remain bullish on the stock, which has a 12-month average price target of $21.50, at 36% upside from the last close.
READ: THE QUESTION EVERY POT INVESTOR ASKS HIMSELF – AURORA CANNABIS OR HEXO?
The bull thesis is built on the $1.8 billion equity investment made into the pot firm by cigarette maker Altria Group (NYSE: MO). With the investment, Altria holds a 45% stake in Cronos, with additional warrants to increase holding to up to 55%. Many market watchers predict Altria’s gradual acquisition of the entire company, for both the companies to build a powerful and diversified portfolio.
As the deal with Altria Group was closed during the last quarter, investors will be looking at the financial implications of the collaboration. Expect the management to talk in detail during the earnings conference call on how it plans to utilize the massive investment from Altria. The market expects the Canadian firm to use up the cash for its international expansion plans.