Tilray Brands Will Continue To Trend Lower

Summary:

  • Initiating coverage on Tilray Brands with a “Sell” rating due to weak fundamentals and sustained bearish momentum.
  • Tilray’s diversification into craft beer indicates potential struggles in the cannabis sector, with overestimated growth in the beer market.
  • Cannabis segment growth is decelerating, with disappointing international revenue and heavy reliance on acquisitions, leading to equity dilution.
  • Tilray’s financials show weak fundamentals, negative operating cash flows, high leverage, and margin compression, making it unattractive compared to other cannabis players.

Close-up of natural pattern on cannabis leaf

Morsa Images

Initiating Coverage

I am initiating coverage on Tilray Brands (NASDAQ:TLRY)(TSX:TLRY:CA) with a “Sell” rating. Tilray stock has been in a downtrend, with a correction of almost 50% in the last 12 months. I believe that the bearish momentum for


Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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