Early on May 3, Jefferies provided updated ratings for some of the major cannabis stocks. Tilray (TLRY) was upgraded to a “hold” from “underperform.” Tilray has experienced a significant sell-off since the beginning of 2019. There are concerns that the stock’s valuations were too rich. The stock rose ~1% when the market opened.
Sign up for Bagels & Stox, our witty take on the top market and investment news, straight to your inbox! Whether you’re a serious investor or just want to be informed, Bagels & Stox will be your favorite email.
Analysts’ consensus on Tilray
Among the ten analysts covering Tilray stock, the consensus was a “hold” on the company as of May 3. The consensus target price was $107, which was significantly higher than Jefferies.
While Jefferies upgraded the stock’s ratings, it cut the target price on the company to $57 from $61. Jefferies cut the target price due to Tilray’s cost of purchasing from a third-party following the supply shortage. Jefferies thinks that Tilray’s share in the Canadian market and the European medical market will be lower.
Jefferies cut its target price for Cronos Group (CRON) to 15 Canadian dollars from 17 Canadian dollars due to expectations of a lower share in Canada’s recreational market. Cronos Group was trading ~1% lower when the market opened.