TLRY - Morningstar Trims Tilray's Price Target Here's What's Behind It | Benzinga
Morningstar reduced its price target for Tilray Brands, Inc. (NASDAQ:TLRY) from $3.30 to $3.10, on Wednesday, Feb 14, all while keeping its four-star rating intact, reported Green Market Report's Debra Borchardt.
According to analyst Kristoffer Inton, three reasons contributed to the price decline, including reduced revenue in the short term driven by ongoing market fragmentation, pricing compression and the illicit market in Canada.
In terms of the company's Canadian business, the analyst's report projects "mid-single-digit organic growth over the next 10 years."
While it is affected by increasing competition when it comes to the development of consumer brands, Tilray’s acquisition of Hexo in 2023 would result in more market consolidation.
In terms of international operations that make up for 15% of the company's gross cannabis revenue, prospects seem to be better as competition is limited by stricter rules.
"We forecast high-single-digit growth over the next 10 years as more medical cannabis legalization ...