Please ensure Javascript is enabled for purposes of website accessibility

Here's Why Tilray Stock Is Surging

By Joe Tenebruso - May 7, 2021 at 8:48PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Analysts are high on the cannabis company's growth prospects.

What happened 

Shares of Tilray (TLRY) jumped Friday, following bullish analyst commentary. By the close of trading, the popular marijuana stock's price was up 14.4% after rising as much as 20.2% earlier in the day.

So what

Jefferies analyst Owen Bennett raised his rating on Tilray's stock from underperform to buy. He now sees the cannabis producer's share price rising 42% to $23, following its recently completed merger with Aphria.

A marijuana bud on top of rising stacks of gold coins.

Analysts at Jefferies see sizable gains ahead for Tilray's shareholders. Image source: Getty Images.

Bennett believes the combination of Aphria and Tilray is a "perfect match," as it brings together their leading positions in Canada and international markets. He posits that the newly formed company is well positioned to gain share in its existing markets -- and make a successful push into the U.S. market.

Now what

With a large global geographic footprint, industry-leading operational scale, and low-cost production facilities, Tilray is poised to compete and win in the rapidly expanding cannabis market. Better still, management expects to wring out roughly $81 million in annual expenses, which should help to bolster the company's profitability. Tilray, in turn, appears set to generate strong increases in sales and profits -- and, by extension, additional gains for its investors -- in the coming years. 

Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Tilray Stock Quote

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/09/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.