A Fresh Look at Tilray (NasdaqGS:TLRY) Stock Valuation After Recent Market Weakness

Tilray Brands (NasdaqGS:TLRY) stock has seen choppy movement lately, with shares down around 31% in the past month. Investors are watching closely to see whether sentiment shifts as the cannabis sector remains under pressure.

See our latest analysis for Tilray Brands.

Tilray’s share price decline over the past month comes after a tough year overall, with a 1-year total shareholder return of negative 20% and an even steeper 3-year total return of negative 72%. Momentum has clearly faded, as investors seem less willing to take on exposure given the sector’s ongoing challenges and shifting growth expectations. However, the story could change quickly if sentiment improves.

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With shares trading well below recent analyst price targets, investors are left wondering whether Tilray is currently undervalued given its sector struggles, or if the market has already accounted for all future growth expectations.

Most Popular Narrative: 39% Undervalued

Tilray Brands’ most widely followed valuation narrative puts its fair value much higher than the current market price. This implies significant upside if optimistic forecasts are realized. The narrative centers on international expansion and regulatory developments as the potential game-changers for future earnings.

“Tilray’s international cannabis business is achieving rapid organic growth, with European cannabis revenue up 112% YoY (excluding Australia) and significant share gains in Germany due to regulatory tailwinds, broader medical adoption, and expanding legalization. This supports a long runway for top-line revenue acceleration as global cannabis markets open.”

Read the complete narrative.

How does this ambitious price target come together? Behind it is a bullish vision built on a turnaround in profit margins, steady revenue expansion, and a bold forecast that bucks industry averages. The real surprise? You will not believe which key financial lever transforms the company’s outlook. See what analysts are really betting on inside the full narrative.

Result: Fair Value of $1.78 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, persistent regulatory delays or additional price pressure in Canada could quickly undermine optimism about Tilray’s long-term growth prospects.

Find out about the key risks to this Tilray Brands narrative.

Build Your Own Tilray Brands Narrative

If you see things differently or want to dig deeper into the numbers, you have the tools to craft your own story in just minutes using our platform. Do it your way

A great starting point for your Tilray Brands research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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