Tilray Brands (NASDAQ:TLRY) stock is rising today on a positive regulatory update out of Canada. The country recently appointed a panel to review its Cannabis Act. Last week, the panel released two recommendations that should benefit the cannabis industry at large. Specifically, the panel believes the country should enable pharmacy access of medical marijuana and “reconsider how excise tax is applied to recreational products,” according to MJBizDaily.
This news is boosting Canadian cannabis stocks across the board, putting shares of TLRY stock and others in the green for the past five days. Now with the country’s budget scheduled to be released this month, momentum is keeping these stocks elevated.
What’s Happening With TLRY Stock?
So far, 2024 has been a great year for cannabis producers. On April 1, Germany’s new policy took effect, legalizing recreational cannabis in yet another country. Even with some Republican Senators attempting to slow progress on the legalization front in the United States, TLRY stock and its peers have been enjoying a smooth ride to the top. Shares of Tilray climbed up by 18% today.
Now that Canada appears to be leaning toward adopting even more pro-cannabis policies, the future of the industry looks greener than ever. As a dynamic brand with operations in both the U.S. and Canada, Tilray is in a particularly excellent position. Shares have already surged an impressive 67% over the past one month. If this type of growth continues, TLRY may not trade under $5 for much longer.
Tilray’s financials should also give investors cause for optimism. As InvestorPlace contributor Faizan Farooque reports:
“Tilray has reaffirmed its adjusted EBITDA target for the fiscal year ending May 31. The cannabis company is aiming for $68 million to $78 million, representing an 11% to 27% rise over the previous fiscal year. In addition, the business anticipates producing positive adjusted free cash flow, highlighting its solid financial position and planned expansion plans.”
Farooque also notes that buying into Tilray now could provide investors with exposure to 8% upside potential. Of course, TLRY stock isn’t trading at the levels of some of its competitors. But its current low price point around the $2.80 level provides investors with a tempting opportunity — if they don’t mind waiting for the global regulatory landscape to shift further in cannabis’ favor.
On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
