Tilray Stock Rallies Amid Growing Reports of Marijuana Rescheduling to Schedule III

Tilray Brands Inc. (TLRY) rallied 20.87% on Monday and is up another 4.32% after hours, driven by growing reports of marijuana being rescheduled to Schedule III of the Controlled Substances Act and Jefferies analyst Kaumil Gajrawala reiterating a "Buy" rating with a raised price target. The stock has maintained its bid price above $1 for 9 straight days and is now just 1 day short of regaining compliance with Nasdaq's per-share price rule.

Tilray Brands Inc. (TLRY) experienced a significant rally on Monday, with the stock gaining 20.87% and an additional 4.32% after hours, driven by growing reports of marijuana being rescheduled to Schedule III of the Controlled Substances Act and an analyst upgrade [1].

The rescheduling of marijuana to Schedule III, which would place it alongside substances like Tylenol with codeine and anabolic steroids, is seen as a major catalyst for the cannabis industry. If this move is finalized by President Donald Trump over the next couple of weeks, it could lead to increased profitability for cannabis companies like Tilray, as it would allow them to deduct more expenses from revenue [2].

Adding to the positive sentiment, Jefferies analyst Kaumil Gajrawala reiterated a "Buy" rating on Tilray and raised the price target from $1.50 to $2.00 per share. This represents an upside of 46.63% from the current price [1]. The analyst's upgrade suggests that Tilray has strong growth prospects and could benefit from the rescheduling of marijuana.

Tilray's stock has been on a remarkable run, closing above $1 for nine consecutive days. This compliance with Nasdaq's per-share price rule is just one day short of being fully regained [1]. The company's recent performance has been impressive, with the stock up 98.57% over the past month and a 52-week low of $0.32 per share.

Despite the positive momentum, it is essential to note that Tilray's stock has a mixed analyst rating, with an average rating of "Hold" and an average target price of $1.94 [2]. Additionally, the company's financials indicate a challenging operating environment, with a negative net margin of 265.69% and a negative return on equity of 6.83% [2].

In summary, Tilray Brands Inc. (TLRY) stock has been surging on the back of rescheduling rumors and an analyst upgrade. While the company faces significant challenges, the potential benefits of marijuana rescheduling could lead to increased profitability and growth prospects. Investors should closely monitor the developments in the rescheduling process and Tilray's financial performance.

References:
[1] https://www.benzinga.com/markets/penny-stocks/25/08/47324307/tilray-stock-continues-to-rally-after-hours-heres-why-its-moving
[2] https://www.marketbeat.com/instant-alerts/tilray-brands-nasdaqtlry-given-new-200-price-target-at-jefferies-financial-group-2025-08-25/