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Tilray Inc. (TLRY) - Get Tilray, Inc. Report shares were up 2.5% in morning trading on Tuesday, Oct. 16, after Benchmark analyst Mike Hickey initiated coverage on the Canadian cannabis company with a "buy" rating and $200 price target. 

Hickey's bullish note is based on his view that the upcoming full legalization of the plant in Canada, which occurs on Wednesday, Oct. 17, will be a boon for the company. Tilray has shown early leadership in the Canadian medical cannabis market, according to Hickey. 

Other tailwinds Hickey sees include the company's strategic alliance with pharmaceutical company Novartis AG (NVS) - Get Novartis AG Sponsored ADR Report and supply agreements with Canadian pharmacies that also give the company a competitive edge. 

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The final tailwind, according to Hickey, is international growth from countries who have not yet fully legalized cannabis, but are expected to be on their way to doing so. The opportunity for capital infusions from those companies is enough for the company to issue a price target that is 21% higher than the company's closing price on Monday, Oct. 15, of $165.64.