Shares of cannabis company Tilray Brands (NASDAQ:TLRY)
jumped 18.6% in the morning session after Jefferies raised its price target on the stock amid growing optimism over a potential shift in U.S. federal cannabis policy.
Shares of Tilray Brands are trading sharply higher Monday morning. The stock is being bolstered by a positive note from Jefferies and growing optimism around significant U.S. cannabis reform this year.
Tilray's stock rally is fueled by market anticipation of a U.S. cannabis rescheduling decision, a key catalyst for the entire cannabis sector's future.
Wall Street has issued downbeat forecasts for the stocks in this article.
These predictions are rare - financial institutions typically hesitate to say bad things about a company because it can jeopardize their other revenue-generating business lines like M&A advisory.
A highly volatile stock can deliver big gains - or just as easily wipe out a portfolio if things go south.
While some investors embrace risk, mistakes can be costly for those who aren’t prepared.
As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at beverages, alcohol, and tobacco stocks, starting with Tilray (NASDAQ:TLRY).
A number of stocks fell in the afternoon session after markets pulled back amid hotter-than-expected inflation data. The main concern for investors was the July Producer Price Index (PPI), a measure of wholesale inflation. The higher-than-expected reading suggests that companies could face squeezed profit margins due to rising costs. This also reduces the likelihood of the Federal Reserve cutting interest rates, which could further dampen economic activity. Compounding these inflation fears are multiple reports signaling a weakening consumer.
Tilray said it was evaluating several options, including, but not limited to, a stockholder-approved reverse stock split to address capital structure and maintain adherence to Nasdaq’s continued listing requirements.
Shares of cannabis company Tilray Brands (NASDAQ:TLRY)
jumped 18.9% in the morning session after it announced a strategic partnership to expand its medical cannabis presence in Italy, amid broader sector optimism fueled by potential U.S. regulatory changes. The company's subsidiary, FL Group, has partnered with Italian pharmaceutical firm Molteni to increase the availability of Tilray's medical cannabis extracts across Italy. Beyond this company-specific news, Tilray's stock is also benefiting from a powerful sector-wide rally. Investor optimism is surging due to speculation that the U.S. government may reclassify marijuana from a Schedule I to a Schedule III substance. This potential regulatory shift, reportedly being considered by the President, could provide significant tax relief for cannabis companies by easing restrictions under Internal Revenue Code Section 280E, which would directly improve profitability.
Cannabis company Tilray Brands (NASDAQ:TLRY) fell short of the market’s revenue expectations in Q2 CY2025, with sales falling 2.3% year on year to $224.5 million. Its GAAP loss of $1.30 per share was significantly below analysts’ consensus estimates.
