Nucor earnings beat by $0.08, revenue fell short of estimates
In a challenging market environment, Tilray Inc (NASDAQ:TLRY) stock has recorded a new 52-week low, dipping to $0.78, with technical indicators from InvestingPro suggesting the stock is in oversold territory. This latest price level reflects a significant downturn for the company, which has seen its stock value decrease by 55.09% over the past year. Despite these challenges, the company has achieved 18.38% revenue growth in the last twelve months, and analysts expect continued sales growth. Investors are closely monitoring the stock as it navigates through a period marked by regulatory hurdles and competitive pressures within the cannabis industry. According to InvestingPro’s Fair Value analysis, the stock appears undervalued at current levels. The 52-week low serves as a critical indicator of the stock’s current volatility and the broader sector’s performance issues, which have been exacerbated by economic uncertainties. With a market capitalization of $734 million and analysts projecting profitability this year, the stock’s trajectory remains a focus for value investors.
In other recent news, Tilray Brands, Inc. reported quarterly sales of $211 million, aligning with TD Cowen’s projections but falling short of the broader market consensus of $218 million. The shortfall was primarily due to a 16% decline in Canadian adult-use cannabis sales. Despite this, Tilray’s management anticipates a rebound in the third quarter as the company refocuses on previously de-prioritized categories. In another development, Tilray reached a $21 million settlement in a securities class action lawsuit against its subsidiary, Aphria (NASDAQ:APHA), Inc. The settlement, which does not admit liability, is covered primarily by insurance and will not negatively impact earnings.
Jefferies analyst Owen Bennett reaffirmed a Buy rating on Tilray, maintaining a $2.50 price target, citing the company’s strategic focus on profitability and its dominant position in the global cannabis industry. Meanwhile, TD Cowen adjusted its price target on Tilray shares from $2.00 to $1.50 but maintained a Buy rating, forecasting fiscal year 2025 sales at $900 million. The firm revised its FY25 EBITDA estimate downward to $62 million, suggesting an EBITDA margin of 7%. Additionally, the imposition of a 25% tariff on Canada by President Donald Trump has raised concerns about increased costs for Canadian cannabis operators, including Tilray, potentially impacting their export business.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.