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Jefferies analyst Owen Bennett double upgraded Tilray (TLRY) to Buy from Underperform with a $23 price target after resuming coverage of the name.
The merger of Tilray and Aphria (APHA) is a "perfect match," combining strong positions in Canada, the U.S. and Europe, Bennett tells investors in a research note. The analyst says the combined company will be the clear leader in Canadian cannabis market and should see further market share gains given the strength of both product portfolios.
Further, the balance sheet should support near-term entry into U.S. market while state structure exists, leaving Tilray well placed for eventual federal legalization, contends Bennett. Tilray in premarket trading is up 5% to $14.85.
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