Tilray Grows 64% After ‘Perfect Match’ Merger, Analyst Says – fr

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Tilray Grows 64% After ‘Perfect Match’ Merger, Analyst Says – fr


Wall Street begins to fade away Tilray (NASDAQ: TLRY) now that the marijuana producer has completed its merger with Aphria.

Jefferies analyst Owen Bennett just downgraded Tilray from underperforming to buying, telling investors in a research note that the cannabis company had made the “perfect match” and saying it had huge upside potential in the United States, Canada and Europe.

As he resumed hedging the pot stock, he set a price target of $ 23 per share, 64% above the $ 14.15 per share price where Tilray closed Thursday’s session.

Image source: Getty Images.

While the combined company will retain the Tilray name, it is really Aphria’s management in charge of the business. Its CEO will occupy the same position in the new Tilray, and he has also been appointed chairman.

Bennett describes the post-merger company as being by far the leader in the Canadian marijuana market, and due to the strength of the cannabis portfolios the two companies have brought with them, it is expected to continue growing its market share. .

He also believes Tilray is well positioned to take advantage of the U.S. market as it is currently structured, and believes that if the federal government finally legalizes marijuana in the next few years, the company will be able to capitalize on the opportunities that change. will open. , too much.

Although Wall Street is quite optimistic about Tilray, not everyone sees such an advantage. For example, Cannacord Genuity analyst Matt Bottomley says most of the cannabis company’s dominance is already embedded in the course of its stock at a “hefty premium.” Yet after resuming cover for Tilray with a price target of $ 17 per share, Bottomley is still anticipating a 20% rise from his current location.

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