Tilray Stock Drops As Biggest Bull Cuts Price Target By 60%

Tilray Stock

Tilray Inc’s (NASDAQ:TLRY) biggest bull has slashed her price target for the company by 60%, sending Tilray stock 2.7% into the red.

Tilray Stock: Still A Good Opportunity?

Vivien Azer of Cowen & Co. cut her 12-month target for TLRY stock from $150 USD to $60 USD; however, she still believes that the stock represents a good buying opportunity while it’s weak. Tilray stock, which made history by becoming the first pot stock to list on a major US exchange when its shares began trading on the NASDAQ last year, has dropped nearly 90% from a 52-week high of $300 as the cannabis market looks to recover from a number of early issues and scandals.

Capitalize off Cannabis
Sign up now to start receiving our investing insights for FREE!

 

TLRY Most Impacted By Weak Industry

Azer wrote on Tuesday that the Canadian cannabis market “has been challenging over the last few months, as too few stores, supply shortages and a lack of novel products have hampered category development. We would argue that TLRY has been the most impacted by weak industry supply as its asset-light model was initially overly reliant on third-party supply.” Tilray stock is currently valued at $29.30, having lost as much as 44% in August despite some positive announcements.

>> Aurora Stock Down 4% As Company Sells Off Remaining TGOD Shares

Tilray Stock Still Outperforming

Azer maintained her outperform rating on Tilray stock as she believes the company had made proactive moves to address the issues it faces, such as the company’s acquisition of Alberta retailer FOUR20 and an agreement with Cannamedical Pharma GmbH to export $3.3 million of medical cannabis to Germany. The company is also well-positioned to enter the US CBD market, which could be worth more than $20 billion USD by 2024, according to some analysts. Michael Hickey of Benchmark Co. now becomes Tilray’s biggest bull with a price target of $80 USD.

Despite losing its biggest bull, Tilray CEO Brendan Kennedy was optimistic when speaking to Yahoo Finance today“In Canada, we can be profitable in the next quarter or two. In Europe, Portugal, Germany definitely in the next two to three quarters. And then individual countries will take a little bit longer,” he told The First Trade. With profitability perhaps not that far away, maybe Tilray stock is a good one to keep an eye on while it’s relatively low.

>> Read More Tilray News

Featured Image: Canva

If You Liked This Article Click To Share