There’s no guarantee that cannabis will be reclassified on a federal level in the U.S. in 2024. However, just imagine what could happen to Tilray (NASDAQ:TLRY) (TSE:TLRY) stock if the Biden Administration enacts pro-cannabis legislation. It’s a gamble on an uncertain outcome, but I am still generally bullish on TLRY stock.
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Tilray is a Canadian cannabis producer that also delves into craft beers. A Tilray subsidiary, the SweetWater Brewing Company, recently expanded its lineup of high-alcohol-content beers.
However, Tilray’s bread and butter is cannabis production. If there’s positive news on the legislative front, Tilray can venture aggressively into the U.S. market and rake in a whole lot of green, if you know what I mean.
Great News for Tilray Investors
There are plenty of positive news items for Tilray’s shareholders to chew on. First of all, it’s a good sign that Tilray CEO Irwin Simon bought 53,700 shares of TLRY stock. That’s what I would call confidence in a company and putting your money where your mouth is.
Second, Tilray seems to be in a decent financial position, with $260 million worth of cash and other resources. Furthermore, in the company’s most recently reported quarter, Tilray generated record revenue totaling $194 million. That’s up 34% on a year-over-year basis.
Besides, Tilray might be technically a small-cap company, but it has a big presence. In fact, Tilray states that it has the number-one cannabis market share in Canada. That’s impressive, as some folks would claim that Canada is “Cannabis Central.”
Finally, there’s potentially good news for Tilray in the works, as the buzz is growing louder about the Biden Administration possibly rescheduling cannabis as a less-restricted Schedule 3 drug sometime in 2024. If that happens, Simon expects that it would help attract “institutional shareholders that actually can hold the stock.”
Is Tilray Stock a Buy, According to Analysts?
On TipRanks, TLRY comes in as a Hold based on one Buy, five Holds, and zero Sell ratings assigned by analysts in the past three months. The average Tilray stock price target is $2.33, implying 14.8% upside potential.
Conclusion: Should You Consider Tilray Stock?
Tilray has a huge presence in Canada’s cannabis market, and the company’s chief executive owns a lot of shares. Moreover, Tilray’s revenue growth is impressive, and a possible rescheduling of cannabis in the U.S. would certainly benefit Tilray’s business. Consequently, risk-tolerant investors who are bullish on the cannabis market might want to consider a stake in TLRY stock.
