Is Tilray’s $2B Valuation Just The Beginning? Analyst Sees $10B Market Opportunity, Initiates Coverage
With a $2 billion valuation, Tilray Brands (NASDAQ: TLRY) ranks as the largest cannabis company outside the U.S., leading in international sales and the Canadian recreational market. Pablo Zuanic of Zuanic & Associates has initiated coverage on Tilray with a ‘Neutral’ rating, highlighting the company’s significant potential in global markets.
“In a bull-case scenario, the stock could be near $7 a year from now. On near-term execution and reinvestment risk, we prefer to start at Neutral but are long-term constructive,” Zuanic wrote. “Tilray is focused on building an alcohol drinks ecosystem in the US that it believes could yield revenue synergies in the future with cannabis.”
Zuanic’s analysis projects a strategic premium on Tilray’s diversified cannabis operations.
His financial projections suggest that Tilray’s sales will rise from $784 million in FY24 to $924 million in FY26, with an improvement in earnings per share from -$0.32 in FY24 to -$0.10 in FY26.
Strategic Assets And U.S. Opportunities
Tilray’s diversified portfolio includes beverages, wellness products and distribution, which might benefit from U.S. federal legalization.
Despite challenges in acquiring U.S. assets due to federal restrictions, upcoming regulatory changes could provide a strategic window for Tilray.
The company recently announced a $250 million equity offering which might …