Marijuana company Tilray (NASDAQ:TLRY) jumped 3.6% in premarket trading, and has so far held those gains going into this morning's session. It's also added to its premarket gains, up 11.95% over yesterday's close as of this writing. Several reasons are giving marijuana stocks, in general, an edge, and Tilray, in particular, a boost, with new supports coming out from some unlikely places. Overall analyst sentiment is a bit more skeptical, but there are signs that Tilray is getting more bullish support than it's had previously.
Tilray Stock Price Gets A Boost From Major Supporters
The Tilray stock price gained specifically on the strength of new word from Cantor Fitzgerald. Cantor Fitzgerald earlier today upgraded Tilray to “overweight” thanks to Tilray's recently-completed merger with Aphria. Cantor Fitzgerald noted that the combined company will have quite a bit more strength behind it, combining Tilray's reach in international markets with Aphria's leading position in the Canadian recreational market.
This led Cantor Fitzgerald analyst Pablo Zuanic to consider Tilray a “bellwether” for the field, noting that there was no other licensed producer in sight that could make similar claims. Further, with the pandemic easing up and cannabis demand likely to pick up in the wake of store reopenings and the like, Zuanic further noted that that should give Tilray even more tailwind to work with.
As good as that was, it wasn't the only sign of support. Recently, Tilray found itself in the midst of a two-day rally after Amazon (NASDAQ:AMZN) came out in support of the Marijuana Opportunity Reinvestment and Expungement (MORE) Act of 2021. The MORE Act calls for allowing states to establish their own commercial marijuana sales, the full decriminalization of cannabis us in the United States, and an end to criminal penalties for those who sell cannabis in states where it's already been legalized. Amazon's support of the MORE Act is seen as significantly helpful, which gave not only Tilray but other marijuana companies like Sundial Growers (NASDAQ:SNDL) extra support.
How Do Financial Analysts Feel About Tilray Stock?
The Tilray stock forecast, as based on our latest research, is restrained overall. The company currently has a consensus rating of “hold”, a rating that's held strong for the last two years. However, there are signs of bullish sentiment beginning to break out that may bode well for the future.
A year ago, Tilray had five “buy” ratings, 10 “hold” and one “sell” to its credit. Six months later, that shifted to four “buy” ratings and 10 “hold”, with the seller departing the field. Today, we're at five “buy” ratings and eight “hold”, which demonstrates the ratio of “buy” to “hold” is improving toward “buy”, albeit gradually.
The Tilray share price target, meanwhile, occupies a fairly narrow range. The current average price target for Tilray is $20.67 per share, with a current high target of $32 and a low of $4.75.
Recent action for Tilray has been comparatively mild, and even somewhat mixed. While Cantor Fitzgerald hiked its assessment from “neutral” to “overweight”, the company also slashed its price target, going from $30.25 to its current target of $22 per share. Meanwhile, around three weeks ago, Cowen initiated coverage on the company, declaring it an “outperform” but setting no price target. Just four days before that, Jefferies Financial Group came in with the biggest support the entire month had seen, upgrading Tilray from “underperform” to “buy” and raising the price target nearly five-fold from $4.77 to $23. Rounding out the action from May, Canaccord Genuity initiated coverage on Tilray as well, declaring it a “buy” with a share price target of $17.
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