At the same time Stifel's Andrew Carter lowered his price target on the stock to C$14 (US$10.66) from C$16.50. The target represents a potential 21% upside from the stock's Thursday closing price.
Carter sees Cronos's C$2 billion of cash on hand making it "unconstrained" in its ability to invest toward a global cannabis market opportunity of $200 billion.
That investment will help Cronos build its U.S. CBD business and demonstrate "breakthrough product potential" in the Canadian market, the analyst wrote.
Carter says a recent pullback in the stock should be a buying opportunity for savvy investors due to its "advantaged and enhanced position."
The U.S.-traded shares at last check were down 4.6% to $8.46 on Friday.