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Tilray Jumps on Cantor Fitzgerald Upgrade After Aphria Merger

Cantor Fitzgerald upgraded cannabis provider Tilray to overweight and cut its price target on the stock to $22.

Shares of Tilray  (TLRY) - Get Report were higher Thursday after analysts at Cantor Fitzgerald upgraded the cannabis company to overweight from neutral while lowering its price target. 

The investment firm now has a $22 price target on the Nanaimo, British Columbia, company, down from $30.25. 

At last check Tilray shares were trading up 7.1% at $20.35. They're trading at less than a third of their 52-week high $67, set in early February.

Tilray's nearly $4 billion merger with Aphria, which closed in May, combined Aphria's leading recreational position in Canada with Tilray's strength in international markets, according to Cantor analyst Pablo Zuanic. 

"We do not see another [licensed producer] that can make these combined claims," said Zuanic, who called Tilray's stock a "bellwether" for the sector. He also sees tailwind for the sector as the pandemic eases and cannabis demand picks up.

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Cannabis stocks got a boost earlier this week after Amazon  (AMZN) - Get Report, one of the world's largest employers, voiced support for a federal bill to legalize marijuana.

The Seattle tech and online-retail giant declared that it would no longer screen for marijuana for any position not regulated by the Department of Transportation.

Dave Clark, Amazon's worldwide chief executive for consumer, said in a blog post that its public policy team would be actively supporting the Marijuana Opportunity Reinvestment and Expungement Act of 2021.

The legislation would legalize marijuana at the federal level, expunge criminal records, and invest in affected communities, Clark said.

"We hope that other employers will join us, and that policymakers will act swiftly to pass this law," he added.

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