Wall Street analysts aren't big fans of Cronos Group's (CRON) - Get Report current levels, and BMO Capital is the latest research house to lower its rating on the stock to underperform from market perform.
Analyst Tamy Chen noted that Cronos is now trading at 85 times her future EBITDA estimates, compared to a 70 times multiple for Tilray (TLRY) - Get Report and a 40 times multiple for Aurora Cannabis (ACB) - Get Report .
This continues a slew of downgrades and downside initiations for Cronos, the Canadian cannabis distributor, which Chen said is lagging behind other licensed producers in Canada in building out its production capacity.
Cronos was downgraded to hold from buy by GMP Securities in February, initiated at market perform at Cowen earlier this month, and underperform at Jefferies in late February.
Cronos shares were down 4% in trading Monday, but other pot stocks as a whole are holding up against the negative analyst note.
The ETFMG Alternative Harvest EFT (MJ) - Get Report is up 1% after dipping into the red following the note, while Aurora Cannabis is up more than 2%. However, Tilray is in the same boat as Cronos, falling 1.2% Monday.
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