Tilray Brands Inc (TLRY)

[FUNMAN]

TLRY : Citing current valuation, Piper Sandler cuts Tilray to neutral • 8:34 AM

Piper Sandler analyst Michael Lavery cuts Tilray shares (NASDAQ:TLRY) to neutral from overweight citing unlikelihood of further upside given current valuation.

However, he raises his price target from $15 to $26.

Lavery believes that the merger with Aphria will improve profitability, deal synergies, and lead to an increase in higher margin international sales.

But he expresses concern that it could still be a year or two before marijuana is legally allowed on a federal level in the U.S. "and there is still little visibility on THC's plan to enter U.S. THC markets."

Lavery is maintaining his estimate of 2022 sales of $1.255B.

Yesterday, Tilray reported Q4 2020 results that beat analysts' expectations on both EPS and revenue.

Tilray shares are up 5.3% to $33.17 in premarket trading.