CRON - Cronos downgraded to neutral at CIBC citing valuation

CIBC Capital Markets has downgraded Cronos Group (CRON) to neutral from outperform citing the valuation. However, the analyst John Zamparo has raised the price target to ~$12.50 from $8.00 per share, implying ~1.6% upside to the previous close.Despite the valuations of cannabis stocks hovering near the ‘previous’ peaks on prospects for legalization, the analyst sees challenges ahead to get the majority in the Senate.Though comments from key senators have raised the probability of full legalization in 2022 amid prospects for the SAFE Banking Act, Zamparo believes the upside due from the U.S. operations is already reflected in shares.Noting the revenue and earnings that beat the consensus, Seeking Alpha contributor, D. H. Taylor argued in a bullish thesis on Cronos that the new CEO ‘will help to advance the company's goals.’

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Cronos downgraded to neutral at CIBC citing valuation