Tilray’s Q3 Cannabis Sales Surge 19%, Shares Jump 8% On $24 Target
Jefferies maintained a Buy rating on Tilray after Q3 revenue rose 11.3% driven by a 19% surge in cannabis sales while craft beer fell 24% and shares jumped 8% to $6. The firm affirmed FY26 adjusted EBITDA guidance of $62M–$72M and highlighted 73% growth in international cannabis operations.
1. Jefferies Rating and Price Target
Jefferies maintained a Buy rating for Tilray, reiterating a $24 price target that implies significant upside from current levels and reflecting confidence in the company’s medium-term execution.
2. Q3 Financial Performance
In the third quarter, Tilray reported 11.3% revenue growth and generated approximately $11 million in adjusted EBITDA, narrowly missing gross margin expectations by around 150 basis points.
3. Segment Highlights
Cannabis sales grew 19%, led by a 73% increase in international operations fueled by supply chain improvements and market expansion, while craft beer revenues declined 24%. Strategic partnerships with Carlsberg and BrewDog are expected to bolster future platform strength.
4. Outlook and Guidance
Tilray reaffirmed its fiscal 2026 adjusted EBITDA guidance range of $62 million to $72 million, forecasts fourth-quarter revenue of about $233 million with $39 million in EBITDA, and values the business on a 27x multiple of its projected $95 million fiscal 2027 EBITDA.