Shares of Tilray Brands (TLRY) kicked off last week on a positive note after President Donald Trump said he is considering a proposal to reclassify marijuana as a less dangerous drug. Nonetheless, the stock ended the week with a 10.5% drop on Friday. Overall, TLRY stock has gained nearly 35% over the past five trading days, though it remains down more than 30% year-to-date.
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For context, Tilray Brands produces and distributes cannabis, hemp-based foods, and alcoholic beverages across multiple markets.
What’s Behind TLRY’s Moves?
Speaking to reporters in the White House briefing room, Trump said the review of marijuana’s classification is in progress, and a decision could come within the next few weeks. He added that he hopes the decision “will be the right one.”
The proposed change would move marijuana to Schedule III, which is a category for drugs with accepted medical uses and lower abuse potential. Right now, U.S. law classifies cannabis as a Schedule I drug under the Controlled Substances Act, putting it in the same category as highly dangerous drugs like heroin. Nonetheless, the proposal is currently under review by the U.S. Drug Enforcement Administration (DEA).
Separately, Tilray confirmed it is seeking an extension from Nasdaq to regain listing compliance. This disclosure has likely fueled volatility and contributed to the price reversal on Friday.
What Does It Mean for TLRY?
If marijuana is reclassified as less dangerous, it could lift TLRY stock by easing rules for cannabis companies in the U.S. Such a change would ease restrictions, expand medical and commercial opportunities, and attract more investors.
Overall, TLRY stock has remained volatile in the past year. However, a move of this size is rare even for Tilray, suggesting the news had a major impact on how the market views the company.
Is TLRY a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on TLRY stock based on two Buys and four Holds assigned in the past three months. Furthermore, the average Tilray stock price target of $0.94 per share implies a downside of over 10% from the current level.
