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Tilray Earnings Preview: Fair Price following U.S. House Vote to Legalize Cannabis

Published 2022-04-04, 03:01 p/m
© Reuters.
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By Ketki Saxena

Investing.com -- Major Canadian Cannabis company Tilray (TSX:TLRY) Brands is set to report Q3 earnings on April 6. 

Analysts expect EPS of -0.076 on revenue of $159.4 M, compared to 0.01 EPS on revenue of $155.2 M in the previous quarter. 

Tilray’s Recent Performance 

As of 3:00 p.m ET today, Tilray shares were down 0.86% in the day's trading, continuing losses last week despite the passing of the MORE act in the House of Representatives on Friday. Despite the step forward to decriminalize cannabis at the federal level, the far greater hurdle will be the Senate Vote. In 2020, the Act also passed the House and was stalled by the Senate.

At time of writing, Tilray stock was trading at $7.45, and with a  52-week range of $4.90 - 22.32. Investing Pro Models suggest a fair price target of $7.65, representing a 2.8% financial upside. Investing Pro Models also suggest high uncertainty around Tilray stock. 

Tilray Stock Long Term Outlook

As and when cannabis is legalized in the United States, Tilray remains one of the Canadian cannabis companies best-poised to enter the U.S market. 

Tilray has prior international experience, as a leader in the EU market, and extensive presence in the U.S. already through its part ownership of MadMen, a retail outlet with 24 locations across the 6 U.S states where cannabis has been previously legalized. 

If and when cannabis legalized federally across the United States, the sector is also likely to attract institutional investors, who have hitherto remained aloof from investing in an area so uncertain. Only 15% of Tilray’s shares are currently held by institutional investors.

All currencies USD, unless noted otherwise.

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