Jefferies Maintains Buy on Tilray Brands, Raises PT to $2

Jefferies Maintains Buy on Tilray Brands, Raises PT to $2

In a recent update, Jefferies has raised its price target on Tilray Brands Inc. (NASDAQ:TLRY) from $1.50 to $2.00 while maintaining a Buy rating on the company's stock. This move comes amidst significant market developments and regulatory shifts in the cannabis industry.

The price target increase reflects Jefferies' belief that the potential rescheduling of cannabis from Schedule I to Schedule III in the United States represents a significant federal policy shift that could benefit Tilray. While this change falls short of full legalization, it marks progress as Congress reviews bills related to banking, access, and reform in the cannabis sector. Rescheduling could also provide secondary benefits such as lower taxes and easier research opportunities for cannabis companies.

Tilray is identified as "the biggest potential beneficiary" of these regulatory developments, according to Jefferies. However, the company could face intensifying headwinds in its alcohol business. Despite these challenges, Tilray maintains a moderate debt level and strong liquidity, with current assets exceeding short-term obligations by 2.46x.

In other recent news, Tilray Brands Inc. has applied for an extension to meet Nasdaq’s minimum share price requirements. The company is exploring several options to address this issue, including a potential reverse stock split that would need stockholder approval. Tilray’s share price has been trading below the $1 minimum required by Nasdaq for continued listing. Meanwhile, the company saw a significant boost in its stock price, jumping 17.7%, amid reports that President Donald Trump is considering reclassifying marijuana as a less dangerous drug.

Analysts have given Tilray a consensus rating of "Hold" from five analysts, with one analyst issuing a buy rating and four holding the stock. The average 12-month target price among analysts is $1.9167. CEO Irwin D. Simon recently purchased 165,000 shares at $0.61 per share, increasing his ownership to approximately $2.4 million.

Tilray Brands' latest earnings report revealed a positive EPS of $0.02, exceeding expectations, despite falling short on revenue projections. The company's stock has been trading up 3.6% recently, hitting $1.15.

References:
[1] https://www.investing.com/news/analyst-ratings/tilray-stock-price-target-raised-to-200-from-150-at-jefferies-93CH-4208417
[2] https://www.marketbeat.com/instant-alerts/tilray-brands-inc-nasdaqtlry-given-average-recommendation-of-hold-by-analysts-2025-08-23/