Cronos shares rally as investors cheer latest results

Cronos Group Inc. shares jumped 14% on Tuesday after the cannabis company’s first-quarter revenue of $25 million beat the analyst estimate by $1 million. Raymond James analyst Rahul Sarugaser reiterated an outperform rating on the stock and said Cronos also reported a better-than-expected adjusted Ebitda loss of $18.9 million, against a target for an adjusted Ebitda loss of $27.5 million. Cronos Group’s “strong Canadian sales and robust, high-margin medical sales in Israel” fueled its results, Sarugaser said. Including Tuesday’s gain, Cronos shares are down 16.6% so far this year, compared to a loss of 47% by the AdvisorShares Pure U.S. Cannabis ETF .

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