Tilray Stock Rises 16% Amid Optimism for US Cannabis Reform and European Expansion

Tilray stock jumped 16% to $1.34, fueled by optimism around US cannabis reform and expansion into European markets. Analyst Kaumil Gajrawala upgraded the stock to Buy with a $2 price target. The potential reclassification of marijuana from Schedule I to Schedule III could reduce federal restrictions and open new pathways for medical cannabis access. Tilray also formed a strategic partnership with Italian pharmaceutical company Molteni to expand its European presence.

Tilray Brands (TLRY) stock surged 16% to $1.34 on July 2, 2025, driven by optimism around potential U.S. cannabis reform and the company's strategic partnership with Italian pharmaceutical company Molteni to expand its European presence. The stock's performance was bolstered by analyst Kaumil Gajrawala upgrading the stock to "Buy" with a $2 price target [2].

The market's enthusiasm stems from reports that President Trump is considering reclassifying marijuana from its current Schedule I status to the less restrictive Schedule III category. This potential policy shift could significantly reduce federal restrictions and open new pathways for medical cannabis access. Moving marijuana from Schedule I to Schedule III would eliminate many of the banking, tax, and operational hurdles that have plagued the cannabis industry for years [1].

Tilray's stock performance reflects the broader cannabis sector's boom-and-bust cycles, driven largely by regulatory speculation and shifting political winds. Despite the recent surge, Tilray's stock remains down more than 38% over the past twelve months, though it has gained an impressive 159% in the last three months alone [1].

The company's strategic partnership with Molteni represents a significant pivot for Tilray, aiming to diversify geographically and reduce dependence on the volatile North American market. This international expansion comes as European cannabis markets continue to mature, with Germany leading the charge in medical cannabis adoption [1].

However, the current momentum has raised questions about whether the stock price now reflects overly optimistic expectations about regulatory changes that remain uncertain. Some market observers warn that Tilray's valuation may have gotten ahead of fundamentals, with analysts suggesting the stock could be overvalued by approximately 24% based on current growth projections and market conditions [2].

Tilray's success will likely depend on its ability to execute international expansion plans while navigating the complex regulatory landscape. Investors are closely watching for concrete progress on policy reforms and tangible results from European operations.

References:
[1] https://rollingout.com/2025/08/25/tilray-stock-soar-17-amid-trump-cannabis/
[2] https://finance.yahoo.com/news/tilray-tlry-valuation-focus-u-103049915.html