Morningstar Trims Tilray's Price Target, Here's What's Behind It
Portfolio Pulse from Jelena Martinovic
Morningstar reduced Tilray Brands, Inc.'s (NASDAQ:TLRY) price target from $3.30 to $3.10, citing reduced revenue due to market fragmentation, pricing compression, and the illicit market in Canada. Despite these challenges, Tilray's acquisition of Hexo in 2023 is expected to consolidate the market. The company's international operations are forecasted to grow due to limited competition and expanding medical cannabis legalization. The report also highlighted the impact of the illicit market and potential regulatory costs on profitability. Tilray's shares fell 5.2269% to $1.8199.
February 20, 2024 | 6:33 pm
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Morningstar reduced Tilray's price target from $3.30 to $3.10 due to market fragmentation, pricing compression, and the illicit market in Canada, but noted potential growth from its Hexo acquisition and international operations.
The reduction in Tilray's price target by Morningstar is due to several factors negatively impacting its short-term revenue, including market fragmentation and pricing compression in Canada. However, the acquisition of Hexo and potential in international markets are positive notes. The immediate impact on the stock price, as evidenced by a 5.2269% drop, indicates a negative short-term outlook.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100