TLRY - Tilray: Big Opportunities Ahead In Germany And Alcohol Segment

2024-03-12 06:50:47 ET

Summary

• Recently introduced German cannabis laws will make it easier to obtain medical and therapeutic cannabis products.
• Tilray being the market leader in Germany bodes well for its future revenues, considering its distribution segment represents 41% of its total revenues.
• Tilray’s alcohol segment is growing as a percentage of revenue, which is a positive sign for future profitability thanks to its high margins.
• My price target for Tilray is $4.67 by the end of 2025, representing 175% upside from the current valuation.

On February 23rd, German lawmakers passed a cannabis legalization bill allowing the recreational use of cannabis. However, the law included strict rules that will make it difficult to buy the drug. This has caused public cannabis equities with operations in Germany, including Tilray Brands, Inc. ( TLRY ) to drop on the news as the German version of cannabis legalization is very different from the Canadian version. As is, Tilray is down by nearly 6% since the news....

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