Consensus Price Target Doubles to $10 as Shares Triple on Reclassification Hopes
Consensus price target for Tilray rose from $4.50 to $10.00 over the past year, while CIBC’s John Zamparo maintains an $8.00 target ahead of Q2 results. Shares have nearly tripled in six months, fueled by U.S. cannabis reclassification prospects and partnerships in beverage alcohol and wellness segments.
1. Company Reports Record Second–Quarter Results
Tilray Brands delivered its strongest quarter to date, with consolidated net revenue rising 17% year-over-year to $215 million. The company posted a positive non-GAAP EPS of $0.05, a marked improvement from a loss of $0.14 per share in the year-ago period. Adjusted EBITDA climbed 25% to $42 million, driven by higher margins in both the cannabis and beverage alcohol segments.
2. Shares Jump on Top-and-Bottom-Line Beat
Following the earnings release, the stock rallied 12% in after-hours trading. Analysts cited the company’s outperformance relative to consensus estimates for revenue and adjusted earnings as the primary catalyst. Trading volume spiked to three times its 30-day average, underscoring heightened investor interest.
3. Segment Performance Fuels Margin Expansion
The beverage alcohol business led growth, with revenues up 30% to $45 million, supported by new product launches and expanded distribution in key U.S. markets. Wellness product sales increased 22% to $28 million, while the distribution segment improved its operating margin by 150 basis points, reflecting ongoing cost controls and scale efficiencies.
4. Management Raises Full-Year Guidance
In light of the strong quarter, Tilray’s management raised its full-year revenue outlook to a range of $900 million–$940 million, up from $880 million–$920 million. Adjusted EBITDA guidance was increased to $180 million–$200 million, reflecting confidence in continued margin expansion and contributions from the recently launched medical cannabis subsidiary in the U.S.