Tilray Inc (NASDAQ: TLRY) stock is having a relief rally this morning and all thanks go to Jefferies, which upgraded the stock based on the merger with Aphria.
Jefferies rerated the stock to buy from underperform and lifted the price target of TLRY stock to $23 from $4.77
The firm said the recent merger of the company with rival Aphria Inc. was “the perfect match.” Analyst Owen Bennett raised his price target to $23 from $4.77. “In Canada, a leading portfolio of brands, supported (by) an efficient cost structure,” the analyst wrote in a note to clients.
“In Europe, the market is now picking up, while Tilray’s scale and Aphria’s unique German positioning make it perfectly suited to succeed. And in the US, the combined company’s broader consumer goods portfolio and strong balance sheet supports excellent optionality around both US THC and CBD.”
Bennett is expected pro-forma fiscal 2020 to fiscal 2024 combined sales growing 33% to leave fiscal 2024 sales at $1.7 billion, compared with average major Canadian licensed producers of $482 million and major U.S. multi-state operators of $1.6 billion.
TLRY stock is up by 13% at $15.99 in the early session on Friday. The stock has lost 75% from its peak price of $67 in February.
Writing for business and finance publishers has become his passion over the last decades after he completed a master’s degree in Financial Management. Sharing some opinions and forecasts to thousands of readers is a routine job for him but he never promises to invest in one stock.