PI Financial analyst Jason Zandberg thinks there is a lot of value in Cronos Group (TSXV:MJN), some of which might not readily apparent to investors.

On Monday, Cronos Group reported its Q1, 2017 results. The company posted EBITDA of negative $1.3-million on revenue of $400,000.

Zandberg says the results fell just short of his expectations, but says he believes the publicly stated sum-of-the-parts valuation of the company is low, particualrly when it comes to the various stakes it has in some of its peers.

“The total value of MJN’s portfolio of LPs is estimated to be $26M – $36M higher than what is stated on its balance sheet,” says the analyst. “The balance sheet values its investment in Whistler Medical Marijuana (21.5% ownership), Hydropothecary (1.9%), ABcann Medicinals (6%), Evergreen Medicinal (6.25%) and Canopy Growth shares (could increase depending on Vert Medical achieving its Health Canada license) at $7.7M whereas we believe that the value is closer to $35M – $45M.”

In a research update to clients today, Zandberg maintained his “Buy” rating and one-year price target of $4.25 on Cronos Group, which closed Tuesday at $2.66.

Zandberg believes Cronos Group will post EBITDA of negative $541,000 on revenue of $9.06-million in fiscal 2017. He expects these numbers will improve to EBITDA of positive $12.18-million on a topline of $42.7-million the following year.