GLJ Research Would Be 'Aggressively' Shorting Tilray (TLRY) on Today's Strength

January 10, 2022 1:09 PM EST
Get Alerts TLRY Hot Sheet
Price: $3.06 -2.55%

Rating Summary:
    4 Buy, 15 Hold, 5 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 12 | Down: 28 | New: 29
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GLJ Research analysts Gordon Johnson and James Bardowski reiterated a Sell rating and $0.82 price target on Tilray (NASDAQ: TLRY) following results from the company, saying they would "aggressively" shorting the strength in the stock, saying it is a "company teetering on the edge of disaster."

The analyst commented, "Our initial take on TLRY's F2Q22 results reveal a company teetering on the edge of disaster. Specifically, the two biggest takeaways we had are that (i) reported revenue growth was egregiously misleading (as we detail below, revenue was actually down 14% y/y, not up 20% as reported), and (ii) the "surprise profit" was entirely due to non-operating items (i.e., because the stock fell 26% during the quarter, the embedded options within Tilray's warrants and convertible debt were all marked to a much lower market, resulting in a substantial non-cash, accounting gain). In conclusion, although TLRY's share price was up 15.6% following this morning's print (as of 12.15), we would aggressively be adding to short positions.

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 $6.42 yesterday.

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