Cowen raised Tilray’s sales estimate
On March 25, Cowen raised its sales estimate for Tilray (TLRY) for fiscal 2019 to $179 million from the previous estimate of $119 million. The sales estimate rose nearly 50%. Following the news, Tilray rose during the regular trading session but didn’t hold the gains through the closing. Tilray closed ~1% higher at $67.8 on March 25.
What drove the revision?
Tilray saw the upward revision due to its recent acquisition of Manitoba Harvest, which is expected to add $65 million to the company’s revenues.
Earlier in February, Tilray announced that it will acquire Manitoba Harvest, which is a hemp-based company. According to Tilray, the acquisition will help the company develop new CBD and hemp-based products for the North American market, especially in the United States and Canada. Manitoba Harvest supplies products to over 16,000 retailers in the United States and Canada. The acquisition is expected to be a big advantage for Tilray. To learn more, read Tilray to Acquire Manitoba Harvest.
The acquisition will help Tilray position itself in the recently legalized hemp market in the United States. The acquisition will give Tilray another weapon against its peers (HMMJ) including Canopy Growth (WEED), Aurora Cannabis (ACB), and Aphria (APHA).