Tilray estimates lowered on softer beer sales at Piper Sandler

Piper Sandler analyst Michael Lavery says an unfavorable currency exchange rate, softer than expected beer sales, and some lost distribution for hemp foods are weighing on Tilray’s sales momentum in fiscal Q2. Market share in Canadian recreation use appears to be stabilizing, though the company remains well below its mid-teens share from a year ago and price compression remains a headwind, Lavery tells investors in a research note. He reduced sales estimates to better reflect softer U.S. beer sales, which he says are trending worse than expected, especially Sweetwater’s launch in California. Lavery keeps a Neutral rating on Tilray shares with a $3 price target.