Wall Street is starting to swoon over Tilray (TLRY) now that the marijuana producer has closed its merger with Aphria

Jefferies analyst Owen Bennett just double-upgraded Tilray from underperform to buy, telling investors in a research note the cannabis company had completed the "perfect match," and asserting that it has tremendous upside potential in the U.S., Canada, and Europe.

As he resumed coverage of the pot stock, he set a price target of $23 per share on it, which is 64% above the $14.15 per share price where Tilray closed Thursday's session.

Person inspecting marijuana plant

Image source: Getty Images.

While the combined company will keep the Tilray name, it's really Aphria executives in charge of the business. Its CEO will hold the same position in the new Tilray, and he's also been appointed chairman.

Bennett describes the post-merger company as being far and away the front-runner in the Canadian marijuana market, and because of the strength of the cannabis portfolios both companies brought with them, it should continue to expand its market share.

He also believes Tilray is well-positioned to profit in the U.S. market as it's currently structured, and thinks that if the federal government finally legalizes marijuana in the next few years, the company will be able to capitalize on the opportunities that change will open up, too. 

Although Wall Street is fairly upbeat about Tilray, not everyone sees such tremendous upside. For example, Cannacord Genuity analyst Matt Bottomley says most of the cannabis company's dominance is already baked into its share price with a "sizable premium." Still, having resumed coverage of Tilray with a $17 per share price target, Bottomley is still anticipating a 20% upside from where it sits now.