Gold prices bounce off 3-week lows; demand likely longer term
In a challenging market environment, Tilray Inc (NASDAQ:TLRY) stock has recorded a new 52-week low, dipping to $1.13. According to InvestingPro data, the company maintains a healthy liquidity position with a current ratio of 2.54, while showing promising revenue growth of 18.38% in the last twelve months. The cannabis company, which has been navigating through regulatory hurdles and intense competition, has seen its share price steadily decline, reflecting broader industry trends and investor sentiment. Over the past year, Tilray's stock has experienced a significant downturn, with a 1-year change showing a decrease of 42.36%. This latest price level underscores the volatility and the pressures facing the cannabis sector, as companies like Tilray strive to achieve profitability and growth amidst evolving legal landscapes and consumer preferences. While current market sentiment remains cautious, InvestingPro analysis suggests the stock is undervalued, with analysts setting price targets ranging from $1.25 to $3.00. Get access to 8 more exclusive ProTips and a comprehensive Pro Research Report covering Tilray's complete financial picture.
In other recent news, Tilray Brands, Inc. reported second-quarter financial results, revealing revenue of $211 million, which aligned with TD Cowen's projection but fell short of the broader market consensus of $218 million. The shortfall was attributed to a 16% decrease in Canadian adult-use cannabis sales. The company's adjusted EBITDA of $9 million also missed the consensus estimate of $11.2 million. Despite these results, Tilray's management anticipates a rebound in the third quarter with a strategic shift to refocus on previously de-prioritized categories.
TD Cowen's analyst, Vivien Azer, maintained the forecast for Tilray's fiscal year 2025 sales at $900 million but revised the FY25 EBITDA estimate downward to $62 million. Azer also adjusted the price target on Tilray shares, reducing it from $2.00 to $1.50, while keeping a Buy rating on the stock.
In another development, Jefferies analyst Owen Bennett reaffirmed a Buy rating on Tilray shares, maintaining a $2.50 price target. Bennett highlighted that the sales miss was a strategic choice aimed at enhancing profitability, which he believes is a beneficial approach for the long term.
Tilray also reported growth across all four of its business segments compared to the prior year quarter and reaffirmed its guidance for net revenue between $950 million and $1 billion for fiscal year 2025. The company also highlighted its $25 million synergy plan for the Tilray beverage business, known as "Project 420", of which it has already achieved $17 million.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.