Tilray Brands (TLRY) stock surged nearly 20% on Monday, extending a rally that has lifted the cannabis producer by 28% over the past five sessions. The move came after Jefferies’ Top analyst Kaumil Gajrawala raised his price target from $1.50 to $2 and kept a Buy rating. He pointed to improving sentiment around cannabis names, with upcoming regulatory decisions expected to play a key role in shaping the sector’s outlook. The new price target implies about 44% upside from current levels.
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Analyst’s Take on Tilray
The 4-star analyst said Trump’s effort to reclassify cannabis from Schedule I to Schedule III would mark a “meaningful shift in federal stance” that improves access, eases taxes, and allows more research. “Tilray is the biggest potential beneficiary,” he added, noting strong public support and ongoing reform discussions in Congress could provide further momentum. While reclassification is not full legalization, he emphasized it would still be a transformative catalyst, particularly for Canadian producers like Tilray.
The bullish call also drove heavy trading in Tilray stock, with more than 150 million shares changing hands on Monday, almost triple the 50-day average. It marked Tilray’s third straight day of gains as investors returned to cannabis stocks amid policy optimism.
Policy Shift Could Boost Cannabis
Trump recently said that a review of marijuana’s classification under U.S. law is underway, with a decision expected “within weeks.” The proposal would move cannabis from Schedule I, the most restrictive category, to Schedule III, which includes drugs with accepted medical use and lower abuse risk.
Investors see this as a potential turning point for cannabis companies. A Schedule III label would ease taxes, make research easier, and open the door to broader commercial use. It could also attract more institutional investors into the sector.
Is TLRY a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on TLRY stock based on two Buys and three Holds assigned in the past three months. Furthermore, the average Tilray stock price target of $1.03 per share implies a downside of about 30% from the current level.
