WESCO International and Tilray Upgrade as Sales Improve and Market Conditions Shift

Seeking Alpha analysts have upgraded/downgraded several companies, including WESCO International (WCC) and Tilray (TLRY), based on shifts in market conditions and company-specific strategies. Upgrades were due to improved sales and new partnerships, while downgrades were attributed to declining sales and increased competition.

Seeking Alpha analysts have recently updated their ratings for several companies, including WESCO International (WCC) and Tilray (TLRY), based on changes in market conditions and company-specific strategies. The upgrades and downgrades reflect a range of factors, from improved sales and new partnerships to declining sales and increased competition.

WESCO International (WCC)

WESCO International, a provider of electrical and data center products and services, saw its stock upgraded from Hold to Buy by Badsha Chowdhury. The analyst noted robust sales growth across strategic business units and increased backlog, with significant momentum from AI data centers and electrification promising future margin improvement. Chowdhury emphasized that margin execution will depend on cross-selling success and the pace of growth in data centers and electrification. Despite cost headwinds and utility softness, early signs of recovery and risk mitigation efforts are encouraging. Given its strategic positioning and relatively low valuation multiples, Chowdhury suggests investors consider a 'Buy' rating for the stock [1].

Tilray (TLRY)

Tilray Brands, a Canadian cannabis company, had its rating upgraded from Neutral to Buy by Alan Brochstein, CFA. Brochstein highlighted Tilray’s attractive valuation, improved cash position, and new financial strategies amidst cannabis sector volatility. He noted that Tilray is a volatile stock but remains a large player in the cannabis industry. The upgrade reflects Brochstein’s belief that Tilray is one of the better ideas for investors looking to be involved in the cannabis sector [1].

Align Technology (ALGN) and Credo Technology Group (CRDO)

Align Technology, a provider of orthodontic products, and Credo Technology Group, a software company, saw their ratings downgraded. Align Technology's stock was downgraded from Sell to Neutral by Bret Jensen, who acknowledged a strong balance sheet but suggested it is fairly valued amid slow revenue growth. Credo Technology Group's stock was downgraded from Buy to Hold by Uttam Dey, who warned of an overheated valuation that limits near-term stock price appreciation [1].

Tilray's Q4 Earnings

Tilray Brands reported its Q4 earnings for fiscal 2025, with adjusted EPS declining 50% year over year and revenues falling 2%. However, the company's adjusted EBITDA for the quarter was the second highest in its history. Tilray's focus on non-cannabis businesses, such as beverages and distribution, accounted for approximately 70% of overall sales in fiscal 2025. The company expects adjusted EBITDA for fiscal 2026 to be between $62 million and $72 million, suggesting growth of 13-31% over the prior-year levels [2].

Market Implications

The upgrades and downgrades reflect the ongoing challenges and opportunities in various sectors. Investors should carefully consider these changes and the underlying reasons for the ratings adjustments. As always, it is essential to conduct thorough research and consult with financial professionals before making investment decisions.

References

[1] https://seekingalpha.com/news/4478807-sa-analyst-upgradesdowngrades-wcc-tlry-algn-crdo
[2] https://www.tradingview.com/news/zacks:f3f1d8022094b:0-should-you-buy-hold-or-sell-tlry-stock-post-q4-earnings-release/