Wednesday, August 25, 2021 10:11:01 AM
Stock Markets
Aug 24, 2021 06:31AM ET
https://www.investing.com/news/stock-market-news/tilrays-ebitda-set-to-soar-stock-price-next-2597831
Tilray’s EBITDA Set to Soar; Stock Price Next?
© Reuters.
Tilray (NASDAQ:TLRY) stock appears poised to soar, along with the company's EBITDA, in the coming years. Here's a look at the Canadian cannabis company.
TLRY is focused on conducting medical cannabis research, along with the processing, distribution, and cultivation of products worldwide. The company also supplies cannabis products to pharmaceutical distributors.
It is the world’s largest cannabis company, with the operational scale and strategic footprint to compete effectively in the market. (See Tilray stock charts on TipRanks)
The company has established a network of consumer chains, thanks to its robust capital structure, highly scalable operational footprint, organized executive team, and passion for improving the quality of life of its customers. This author is bullish on TLRY stock.
Tilray's Valuation
While Tilray enjoys a lengthy growth runway, backed by current growth momentum, it still needs to grow into its valuation. While the company is profitable on a forward EBITDA basis, it is not expected to turn a GAAP net profit for the foreseeable future.
The EV/forward revenue ratio is pretty attractive at just 7.9, but the EV/forward EBITDA ratio is still quite high at 67.8. Fortunately, growth is expected to be strong over the next several years, with EBITDA expected to surge by 197.4% in 2021, 129.5% in 2022, and 66.9% in 2023.
Wall Street’s Take
From Wall Street analysts, Tilray earns a Moderate Buy consensus rating based on four Buy ratings, six Hold ratings, and zero Sell ratings in the past three months. Additionally, the average TLRY price target of $19.33 puts the upside potential at 44.6%.
Summary and Conclusions
Tilray is enjoying rapid growth, thanks to its strong presence in a dynamic-growth industry. EBITDA is expected to soar over the coming years, making the 67.8 EV/forward EBITDA ratio more palatable than it might otherwise appear.
Furthermore, Wall Street analysts are generally bullish on the stock. As a result, the current valuation looks pretty attractive. The stock looks like it could be a good buy.
Disclosure: On the date of publication, Samuel Smith had no position in any of the companies discussed in this article.
Disclaimer: The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities.
Recent TLRY News
- Tilray Brands Celebrates Big Wins at the Craft Brewer’s Conference and 2024 World Beer Cup, the Most Prestigious Beer Competition in the World • GlobeNewswire Inc. • 04/25/2024 08:33:50 PM
- Tilray Brands Celebrates Epic 420 Weekend With Over 20,000 Fans Across the U.S. • GlobeNewswire Inc. • 04/25/2024 12:00:00 PM
- Sweetwater Brewing Unveils Modern Rebrand • GlobeNewswire Inc. • 04/25/2024 11:00:00 AM
- Good Supply Cannabis Introduces New Signature ‘Bud Squad’ Products • GlobeNewswire Inc. • 04/24/2024 11:00:00 AM
- Montauk Brewing’s Project 4:20 IPA Returns to Support Surfrider Foundation • GlobeNewswire Inc. • 04/18/2024 12:00:00 PM
- Good Supply Cannabis Brand Celebrates Earth Day and Unveils Environmental Impact of “Green You Can Feel Good About” Campaign • GlobeNewswire Inc. • 04/18/2024 11:00:00 AM
- Tilray Brands Lights Up 420 With Music Festivals and Celebrations Across The Country • GlobeNewswire Inc. • 04/17/2024 11:00:00 AM
- 10 Barrel Brewing Adds 'Juicy Drama' to Its Award-Winning HopBurst Family • GlobeNewswire Inc. • 04/11/2024 12:30:00 PM
- Montauk Brewing Releases Its First Non-Alcoholic Brew: Montauk N.A. IPA • GlobeNewswire Inc. • 04/11/2024 12:00:00 PM
- Tilray Brands, Inc. Reports Q3 Fiscal 2024 Financial Results • GlobeNewswire Inc. • 04/09/2024 11:00:00 AM
- U.S. Futures Show Mixed Movement, Crude Oil Prices Inch Up • IH Market News • 04/09/2024 10:42:21 AM
- Tilray Brands Announces 420 Activations Across Canada and Unveils Celebratory Product Lineup • GlobeNewswire Inc. • 04/04/2024 11:00:00 AM
- UPDATE – Redhook Brewery Announces New “Big Juicy Ballard” IPA and Revives IPA Daze Festival at the Brewlab on 4/20 Weekend • GlobeNewswire Inc. • 04/03/2024 06:02:00 PM
- Redhook Brewery Announces New “Big Juicy Ballard” IPA and Revives IPA Daze Festival at the Brewlab on 4/20 Weekend • GlobeNewswire Inc. • 04/03/2024 12:00:00 PM
- Tilray Medical Announces New Scientific Publication on Age-Related Patterns of Medical Cannabis Use • GlobeNewswire Inc. • 04/03/2024 11:00:00 AM
- Sweetwater Brewing Unveils New 420 Variety Pack • GlobeNewswire Inc. • 04/02/2024 11:00:00 AM
- UPDATE – Breckenridge Brewery Partners With Denver Nuggets to Launch Championship Edition Mile High City Golden Ale • GlobeNewswire Inc. • 03/28/2024 04:50:58 PM
- SweetWater Brewing Launches Hammer Red Amber Ale to Support Georgia Aquarium • GlobeNewswire Inc. • 03/28/2024 12:30:00 PM
- Breckenridge Brewery Announces Special Denver Nuggets Championship Edition Mile High City Golden Ale • GlobeNewswire Inc. • 03/28/2024 12:00:00 PM
- Tilray Brands, Inc. to Announce Third Quarter 2024 Financial Results on April 9, 2024 • GlobeNewswire Inc. • 03/28/2024 11:00:00 AM
- 10 Barrel Brewing Unveils Newest Ready-to-Drink Canned Cocktails • GlobeNewswire Inc. • 03/26/2024 11:00:00 AM
- Redecan Cannabis Launches New Spring Lineup • GlobeNewswire Inc. • 03/21/2024 11:00:00 AM
- Tilray Medical Receives Approval for First Medical Cannabis Extract in Portugal • GlobeNewswire Inc. • 03/14/2024 11:00:00 AM
- Tilray Wellness Introduces New Superfood Products Powered by Hemp at Expo West • GlobeNewswire Inc. • 03/13/2024 05:10:53 PM
- Tilray Introduces New Naturally Flavoured CBG Infused Cannabis Beverages • GlobeNewswire Inc. • 03/13/2024 11:00:00 AM
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