Adding to its ~21% rally in the previous session, Tilray Brands (NASDAQ:TLRY) gained ~11% in the pre-market on Tuesday to record a potential three-day winning streak after Jefferies boosted its price target on the Canadian cannabis player to a Street high.
Analyst Kaumil Gajrawala viewed Tilray (NASDAQ:TLRY), which has lost nearly ~28% over the past 12 months, as the biggest beneficiary if the Trump administration reclassifies cannabis as a less dangerous drug, a move that, according to him, could hurt the alcohol industry.
“Cannabis reclassification poses another headwind to alcohol companies, particularly those without existing exposure, given stolen consumption occasions and cannabis skew to younger consumers,” Bloomberg News reported, citing a research note from Gajrawala.
Reaffirming his Buy rating on TLRY, Gajrawala also lifted the price target on Tilray (NASDAQ:TLRY) from $1.50 to $2.00 per share, the highest among Wall Street analysts, according to Bloomberg data.
His decision came after President Donald Trump confirmed early this month that his administration is considering a proposal to move cannabis from Schedule I under the Controlled Substances Act to Schedule III, where drugs such as ketamine are grouped.