Tilray Brands (TLRY) shares slipped ahead of Thursday’s earnings release as investors turned cautious following a string of weak analyst ratings and mixed financial performance. The cannabis producer has earned a new “Sell (D-)” rating from Weiss Ratings, reflecting growing skepticism around its near-term outlook.
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At around $1.72, Tilray’s stock is trading roughly 9% below its recent high, even after a 189% rally over the past three months driven by renewed optimism around U.S. cannabis reform. Analysts say the pullback suggests traders are locking in profits before the company’s Q1 Fiscal 2026 results, set to be released later today.
Analysts Cut Tilray Stock Ratings as Margins Stay Under Pressure
Tilray’s latest downgrade from Weiss follows a broader cooling in sentiment across the cannabis sector.
Despite Tilray’s last earnings report beating profit expectations, the company’s revenue fell short and it posted a negative net margin of 265.69%, signaling ongoing cost and competition challenges. Weiss Ratings cited persistent losses and slowing sales growth as key risks for shareholders heading into the next earnings cycle.
Options Traders Expect a Big Move
Wall Street is bracing for volatility. Options data from TipRanks show traders are pricing in a 21% swing in either direction following the results. This is a sign that the market expects Tilray’s next update to be pivotal.
Analysts forecast the company will report a loss of $0.03 per share on $204.6 million in revenue, a slight improvement from last year’s figures. However, Tilray has missed EPS estimates in nine straight quarters, keeping investors on edge about whether it can finally deliver consistent profitability.
Jefferies Sees Potential Tailwinds
In a note from August, Jefferies analyst Kaumil Gajrawala raised his price target on Tilray from $1.50 to $2.00, maintaining a Buy rating. He pointed to possible U.S. policy changes, including President Trump’s comments about reclassifying marijuana from Schedule I to Schedule III, as a potential catalyst for the stock.
Gajrawala added that Tilray’s “strong brands, growing scale, and solid balance sheet” could position it well to benefit if reforms progress. Still, many investors remain unconvinced that a regulatory boost alone can offset Tilray’s structural headwinds.
What to Look Out for Next
Tilray’s results later today could set the tone for cannabis stocks heading into year-end. A strong print might help restore confidence in the sector, but continued weakness in revenue or margins could reinforce the current Sell sentiment.
Either way, it’s evident that Wall Street remains divided. While some see Tilray as a turnaround bet, others view it as a stock struggling to keep up in an industry still waiting for its next big catalyst.
Is Tilray Brands Stock a Good Buy?
According to data from TipRanks, Tilray Brands currently holds a “Moderate Buy” consensus based on five analyst ratings, including two Buys and three Holds over the past three months. The average 12-month TLRY price target sits at $1.03, implying a 40% downside from the recent price of $1.72.
