Canadian-based drug manufacturer Tilray (TLRY) - Get Tilray, Inc. Report is one of the most popular cannabis stocks across the online forums. Shares have sunk around 80% to $12 since spiking in early February, catching the attention of bargain hunters.
Following dismal performance in the past months, Wall Street sees opportunity. Could now be a good time to buy the stock near its 2021 lows?
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Wall Street’s bullishness
The consensus rating on Tilray stock is a moderate buy with solid 40% upside potential. Based on the average of 11 reports published in the last 3 months, TLRY should be worth just short of $17.
The most bullish analyst is Jefferies’ Owen Bennett, who sees gain potential of 125% at his price target of $27. He expects Tilray to strike sizable deals in the US some time soon. The analyst also thinks that Tilray should buy cannabis assets to achieve the company’s ambitious sales target.
Only a bit less bullish is Bank of America’s analyst Heather Balsky. She believes in 80% upside at a price target of $21.50. The acquisition of MedMen positions the company well in the US and provides distribution opportunities in Canada and Europe. The analyst stated:
“We expect Tilray to pursue additional opportunities in the US with a focus on brands versus acquiring certain licenses. We view each incremental transaction in the US cannabis market as a positive catalyst."
Not so bullish was the latest take from Piper Sandler. Analyst Michael Lavery reiterated his neutral position on TLRY stock and lowered his price target from $15 to $14.
According to him, increased competition from low-price providers should weigh on Tilray. Still, despite his neutral stance, the analyst sees 19% upside on TLRY over the next year – not bad, considering how richly valued stocks in general have become in the past several months.
The least bullish analyst on record is CIBC John Zamparo, who set a price target of $13.40 on TLRY two months ago. The analyst believes that forecasting the cannabis industry is very difficult – more so for Tilray, after its reverse-merger deal with Aphria earlier in 2021.
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Wall Street Meme’s take
“Regulation” is still the key word for cannabis stocks. Lack of positive news regarding legalization can lead to extended periods of softness in stock prices, which has been happening lately. However, Wall Street appears to see more upside than downside in the space.
Tilray faces the usual integration risks following the recent Aphria and MedMen deals. Still, this may be what it takes for the company to position itself ahead of the competition. As the cannabis industry matures, Tilray may emerge as a winner, and its stock could ride the upside.
A couple months ago, we asked Twitter which cannabis stock was the best buy. Check out the results below and follow @WStreetMemes on Twitter for more!
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(Disclaimers: this is not investment advice. The author may be long one or more stocks mentioned in this report. Also, the article may contain affiliate links. These partnerships do not influence editorial content. Thanks for supporting Wall Street Memes)