Tilray Brands (NASDAQ: TLRY) stock soared almost 20% in intraday trading Wednesday following a favorable regulatory update from Canada.
The Canadian panel has reviewed its Cannabis Act and released two recommendations last week. These recommendations, which include enabling pharmacy access to medical marijuana and reconsidering the application of excise tax to recreational products, are expected to benefit the cannabis industry significantly.
The news has led to a surge in Canadian cannabis stocks, with shares of TLRY and others experiencing a five-day green streak. With the country’s budget set to be released this month, momentum will keep these stocks elevated in the near term.
Favorable Regulatory Environment Boosts Cannabis Producers
The favorable regulatory environment in 2024 has contributed to a bullish outlook for cannabis producers. The recent legalization of recreational cannabis in Germany, effective April 1, further underscores the growing acceptance and legalization of cannabis globally. Despite attempts by some Republican Senators to impede progress on cannabis legalization in the United States, TLRY and its peers have continued their ascent.
The future of the cannabis industry appears even brighter as Canada seems to be moving towards adopting more pro-cannabis policies. Tilray, a dynamic brand with operations in both the U.S. and Canada, stands to benefit significantly from these developments. Its shares have already seen a remarkable 67% surge over the past month, and if this growth continues, TLRY may soon be trading above $5.
Investors have reason to be optimistic about Tilray’s financials. InvestorPlace contributor Faizan Farooque has reported that Tilray reaffirmed its adjusted EBITDA target for the fiscal year ending May 31. The company has set a target of $68 million to $78 million, representing an 11% to 27% increase over the previous fiscal year. In addition, the firm expects to produce positive adjusted free cash flow, indicating its strong financial position and planned expansion.
Farooque also suggests that investing in Tilray now could yield investors an 8% upside potential. While TLRY stock may not be trading at the levels of some competitors, its current price point of around $2.80 presents an enticing opportunity for investors willing to await further shifts in the global regulatory landscape favoring cannabis.
Tilray Brands (NASDAQ: TLRY) Stock Price Action
TLRY stock surged 18.26% to close at $2.85 on Wednesday. The traders had exchanged hands with 71,302,482 (71.30 million) shares compared to the average daily trading volume of 26.24 million.
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