- While Tilray Brands ( NASDAQ: TLRY ) recently closed on a $155M investment in HEXO Corp. ( HEXO ) that promises cost-synergies, Roth Capital isn't so sanguine on Tilray's ( TLRY ) future.
- The stock is down 9% in Friday morning trading.
- The firm halved its price target to $4 and also lowered its estimates following the transaction. It has a neutral rating on shares.
- Analyst Scott Fortune says one of the issues with Tilray ( TLRY ) is that it is losing Canadian cannabis market share, noting it now has just an 8.2% share, down from 9.1% in Q1 2022.
- Tilray reports its fiscal 2022 Q4 earnings on July 28. Roth lowered its estimated revenue to $150.2M and its AEBITDA to $10.9M. Consensus revenue estimate is $152.79M.
- Fortune added he expects lower U.S. sales from Tilray's SweetWater and other alcoholic beverages divisions.
- Check out Seeking Alpha contributor Stone Fox Capital's bearish argument for Tilray ( TLRY ).
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With Tilray's $155M investment in HEXO, Roth Capital sees cannabis headwinds and softness