Canadian cannabis company Tilray rated a Buy with a price target of $200 by Benchmark analyst
Canadian cannabis company Tilray Inc (NASDAQ:TLRY) was rated a Buy by equity analysts The Benchmark Company with a price target of $200, as the analyst pointed to its early leadership in the medical cannabis market and the upcoming legalization of recreational cannabis in the country on October 17, a report by Marketwatch said Tuesday.
Analyst Mike Hickey said in a research note to clients that Tilray’s strategic alliance with Novartis AG (NYSE:NVS) and supply agreements with Canadian pharmacies gives it a competitive edge in the Canadian cannabis market.
He believes the potential international opportunity in cannabis is “enormous,” the report said. Tilray hit a record high of US$300 last month.
The global cannabis market opportunity could top US$200 billion over the long term and Tilray is “well positioned to take a meaningful share of this market,” Hickey explained.
READ: Tilray acquires Alef Biotechnology to expand cannabis presence in Latin America
Shares of Tilray were down 4.25% to US$158.60 by midsession on Tuesday.
The Benchmark Company has been involved for more than 30 years in equity research, sales, trading and investment banking.
Benchmark said it began coverage of the cannabis space on September 25 when it initiated coverage of Canopy Growth Corporation (TSX:WEED) (NYSE:CGC) and set a price target for the company of C$100.
“Our positive view is based on Canopy’s exposure to meaningful demand drivers,” Benchmark said in a news post.
READ: Canopy Growth acquires assets of Colorado-based Ebbu to speed up cannabis research programs
It said those drivers are “Canopy’s early leadership in the medical cannabis market in Canada, upcoming legalization of recreational cannabis in Canada, and international growth from countries that have legalized cannabis and likely future legalization of cannabis for medical and recreational use in the US and overseas.”
The other factor in favor of Canopy Growth are “meaningful investment from Constellation Brands, which accelerates the ongoing build-out of its international production and distribution operations and domestic retail infrastructure to meet rapidly growing global demand, and which enables M&A opportunities and internal development of new brands and products that use cannabis as an active ingredient,” Benchmark added.
Shares of Canopy Growth in Canada were down 4.5% to C$70.40 while its shares in New York declined 5.7% to US$53.65.
Reporting by Rene Pastor, contactable on [email protected]
Story by ProactiveInvestors
Source: https://www.proactiveinvestors.com/companies/news/207213/canadian-cannabis-company-tilray-rated-a-buy-with-a-price-target-of-200-by-benchmark-analyst-207213.html
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