Why is Tilray Stock Trending Higher?

Shares of Tilray Brands, Inc. (NASDAQ: TLRY) are trending higher in pre-market trading, jumping around 9.3%. This rise followed Tuesday’s 6.77% jump in the stock price of the global pharmaceutical, cannabis-lifestyle, and consumer packaged goods company.  

Consolidation in the cannabis space with the announcement of a mega-deal seems to have driven optimism. Cresco Labs (CRLBF) has inked a stock deal to acquire Columbia Care for $2 billion. 

Cresco Labs CEO Charles Bachtell said, “On a pro-forma basis, the combined Company will be the largest cannabis company by revenue, the number one wholesaler of branded cannabis products, and the largest nationwide retail footprint outside of Florida.” 

Investors Remain Cautious  

Turning to Wall Street, Tilray has a Hold consensus rating, based on three Buys, seven Holds, and one Sell. The average Tilray price target of $10.21 implies 79.75% upside potential to current levels. 

Meanwhile, TipRanks’ Stock Investors tool shows that investors currently have a Very Negative stance on Tilray, with investors maintaining portfolios on TipRanks decreasing their exposure to TLRY stock over the past seven days. 

Also, Tilray gets a 1 out of 10 on TipRanks’ Smart Score ranking suggesting that TLRY is likely to underperform market expectations.

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