Tilray (TLRY) PT Lowered to $1.50 at TD Cowen as Canadian Adult-Use Cannabis Continues to Drag

TD Cowen analyst Vivien Azer lowered the price target on Tilray (NASDAQ: TLRY) to $1.50 (from $2.00) while maintaining a Buy rating.

The analyst commented: "Tilray reported 2Q sales of $211M, in line with our $211M estimate, but below consensus $218M due to weaker Canadian adult-use cannabis sales (-16%). Adj. EBITDA of $9M was also below consensus $11.2M. This is disappointing, but management expects sequential improvement in 3Q growth as the company re-engages in the de-prioritized categories responsible for the decline.

Given that 2Q was in line with our sales estimate, we maintain our FY25 sales at $900M. We lower our FY25 EBITDA estimate to $62M (from $67M), which implies a 7% EBITDA margin. We lower our PT to $1.50/share. This assumes a 18x EV/EBITDA multiple against our NTM forward estimate of $83M."

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