TLRY - Tilray Canopy are buys due to potential U.S. legalization CBD beverages - BoA

Tilray (TLRY) and Canopy Growth (CGC) are both buys, according to Bank of America, because of their ability to enter the U.S. market should federal marijuana legalization occur and CBD beverage distribution.BoA analyst Heather Balsky has reinstated coverage of Tilray and Canopy with price targets of, respectively, $23 and C$45.She rates Aurora Cannabis (ACB) as neutral and Cronos Group (CRON) as underperform.Thanks to the recent shareholder approved merger with Aphria (APHA), Balsky expects "multiple expansion" thanks to the resultant gains in scale, efficiencies, and combined liquidity.She is modeling $30M-$35M of quarterly EBITDA by 2H 2022.Tilray is also helped by its November 2020 acquisition of SweetWater Brewing, giving it footing in the CBD beverage market and potentially THC-infused products.Balsky believes that Tilray could become the largest cannabis company in terms of sales in the U.S. and Canada.Should federal cannabis legalization occur, Canopy should be a major player given its financial position, management,

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Tilray, Canopy are buys due to potential U.S. legalization, CBD beverages - BoA