Tilray’s stock surges after Benchmark starts coverage with bullish rating, $200 target
Shares of Tilray Inc. shot up 5.7% in premarket trade Tuesday, after Benchmark analyst Mike Hickey started coverage of the Canada-based medical cannabis and cannabinoid company with a buy rating and $200 price target. Hickey’s price target is 21% above Monday’s closing price $165.64. Hickey said his bullish view is based on the company’s early leadership in the medical cannabis market in Canada, the upcoming full legalization of recreational marijuana in Canada and its strategic alliance with Novartis AG and supply agreements with Canadian pharmacies, international growth opportunities and a “meaningful” capital infusion from its initial public offering in July. “We believe establishing an early first mover advantage is critically important in the emerging cannabis market, particularly when it comes to building national and global scale, leading brands, and developing innovative products and form factors that use cannabis as an active ingredient,” Hickey wrote in a note to clients. The stock has rocketed more than 7-fold since closing at $22.39 on its first day listed on the Nasdaq on July 19, while the ETFMG Alternative Harvest ETF has run up 55% and the S&P 500 has lost 1.9% over the same time.
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