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.