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Haywood lowers price target on Tilray Brands

TLRY stock

A dimmer view of the entire Canadian cannabis segment has Haywood Securities analyst Neil Gilmer lowering his price target on Tilray Brands (Tilray Brands Stock Quote, Chart, News, Analysts, Financials TSX:TLRY).

In a research update to clients July 12, Gilmer maintained his “Hold” rating on Tilray but lowered his one-year price target to $4.00 from his previous target of $7.25, implying a return of 27 per cent at the time of publication.

New York-headquartered Tilray is a cannabis lifestyle and consumer goods company with a suite of 20 different brands across 20 countries internationally and including rec and medical cannabis products and hemp-based foods and alcoholic beverages.

“Tilray remains a market share leader in the Canadian landscape albeit with declining market share, ” the analyst explained. “We are encouraged by the international opportunities, including the recently announced U.S. transaction. However, we remain cautious on the overall Canadian landscape which drives a significant amount of its revenue growth opportunity in the near term.”

Gilmer thinks Tilray will generate Adjusted EBITDA of $46.5-million on revenue of $628.4-million in fiscal 2022. He expects those numbers will improve to EBITDA of $78.3-million on a topline of $709.2-million the following year.

Gilmer says risks associated with TLRY include a reliance on it licenses, which could potentially change, events that may impact its facilities, and a strong landscape of competition in Canada.

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About The Author /

Cantech Letter founder and editor Nick Waddell has lived in five Canadian provinces and is proud of his country's often overlooked contributions to the world of science and technology. Waddell takes a regular shift on the Canadian media circuit, making appearances on CTV, CBC and BNN, and contributing to publications such as Canadian Business and Business Insider.
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