Oppenheimer Unlocks the Key to the Tilray (TLRY) Merger with Aphira

Oppenheimer analyst Rupesh Parikh reiterated a Perform rating on Tilray (NASDAQ: TLRY) after the company announced it would merge with Aphria with shareholders receiving a premium of 23% based on the 12/15 closing price. The implied pro forma equity value of the combined company is ~C $5.0B and is expected to generate ~C$100M in annual cost synergies.

The analyst believes synergies are the key to the transaction, he stated "We overall look favorably upon the deal vs. the status quo for TLRY, as it better positions the company toward a more profitable future. The combined enterprise is expected to generate ~C$100M in annual cost synergies. As a standalone entity, we believed the company had a more difficult path to scale and drive a profitable future in the current regulatory and competitive backdrop. We do not cover Aphria, but execution risk remains high given the current competitive backdrop and complexity of the combination."

For an analyst ratings summary and ratings history on Tilray click here. For more ratings news on Tilray click here.

Shares of Tilray closed at $9.57 yesterday.

You May Also Be Interested In

• Freedom Broker Upgrades PrimeEnergy Resource (PNRG) to Hold
• Benchmark Reiterates Buy Rating on Odysight.AI Inc. (ODYS)
• Deutsche Bank Downgrades Workday (WDAY) to Hold