Image Source: Unsplash

Introduction

Tilray Brands (TLRY), one of the 5 constituents in the MunAiMarkets Canadian Cannabis LP Stocks Portfolio, was down 10.0% last week and is now down 16.3% MTD, down 72.9% YTD and down 84.3% since the end of 2023. Here’s what weighed on the stock last week:

1. Reverse stock split uncertainty: Although shareholders approved a reverse split (between 1-for-10 and 1-for-20) as reported here in an earlier article (see here), Tilray unexpectedly paused the plan on June 10, citing a need to “evaluate timing and stock price”. That indecision raised concerns about compliance with Nasdaq’s $1 minimum bid rule and signaled internal uncertainty.
2. Ongoing cannabis sector pessimism: Broader sentiment around U.S. cannabis reform remained bleak. With federal legalization stalled and states like Texas moving to restrict THC products, investors grew more skeptical about Tilray’s U.S. growth prospects.
3. Weak fundamentals and valuation reset: The company carries a net loss of $945 million and trades at a steep discount to its 2018 IPO valuation of $20 billion—now under $500 million.
4. Analyst downgrades and tepid guidance: Piper Sandler and Roth Capital have both issued “neutral” ratings, with price targets well below $1. That, combined with Tilray’s April guidance cut (to $850M–$900M in FY25 revenue), has kept institutional buyers on the sidelines.

About Tilray Brands

Tilray Brands engages in the research, cultivation, processing, and distribution of medical cannabis products in Canada, the United States, Europe, Australia, New Zealand and Latin America. Specifically, the Company offers:

• medical and adult-use cannabis products;
• purchases and resells pharmaceutical and wellness products; and also 
• produces, markets, sells, and distributes:
  • beverage alcohol products,
  • hemp-based food,
  • and other wellness products.

Stock Price Forecast and Analyst Ratings

The 3 analysts that cover Tilray Brands stock  (see here) have a consensus rating of "Hold" and an average price target of $1.38, which forecasts a 283.33% increase in the stock price over the next year. The lowest target is $1 and the highest is $1.75.

More By This Author:

Cannabis LP Organigram Succumbs To Category Weakness - Down 12% Last Week
Fake News Drops Aurora Cannabis (ACB) Stock 13% On Friday
Cannabis Stock Canopy Growth (CGC) Declined 16% W/e June 20th - Here's Why