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Investing.com - Jefferies reiterated its Buy rating and $1.50 price target on Tilray (NASDAQ:TLRY) following the company’s recent earnings report. Currently trading at $0.58, InvestingPro data shows the stock has experienced significant volatility, with a -11% return over the past week despite strong returns in recent months.
The cannabis and beverage company reported lower-than-expected sales, which Jefferies attributed to several factors including soft beer demand, reset execution challenges, SKU cuts, and delayed cannabis shipments.
Jefferies noted that while beer performance was below expectations, the ongoing portfolio transformation and distributor transitions are necessary steps for Tilray’s long-term growth strategy.
The firm maintains its positive outlook on Tilray based on the company’s leadership position in the global cannabis market, its improved balance sheet, and its leading U.S. craft beer market share, which provides cash flow stability.
Jefferies characterized the current period as a "stepping stone to a larger story" for Tilray, suggesting the firm views current challenges as temporary while the company positions itself for future growth.
In other recent news, Tilray Inc . reported its fourth-quarter 2025 financial results, revealing a mixed performance. The company achieved earnings per share of $0.02, which exceeded analyst predictions of -$0.02. However, Tilray’s revenue came in below expectations, reaching $224.5 million compared to the anticipated $247.02 million, representing a 9.12% shortfall. Despite the revenue miss, Tilray’s stock demonstrated some resilience in premarket trading. Analysts had not made any recent changes in their ratings for Tilray following these results. These developments highlight the ongoing challenges and achievements within Tilray’s financial landscape. Investors are likely to watch for further updates from the company.
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