Weed has made it to Wall Street in a big way. Three marijuana stocks currently trade on the New York Stock Exchange (NYSE), with another recently applying to be listed. Two marijuana stocks are listed on the Nasdaq.
Wall Street is quite bullish on several of the top marijuana stocks, with expectations of huge increases over the next 12 months. But there’s one big marijuana stock that appears to have analysts more excited than any other. Which stock is it? I was surprised to learn that the answer is Tilray (NASDAQ:TLRY).
What analysts like about Tilray
The consensus analysts’ one-year price target for Tilray represents an upside of nearly 70% over the current share price. One especially optimistic analyst thinks Tilray could soar more than 150% over the next year. Even the most pessimistic analyst surveyed by The Wall Street Journalprojects that Tilray’s share price should still increase by around 8% above the current level.
One thing analysts probably like about Tilray is the company’s management team. CEO Brendan Kennedy served as managing director and then chief operating officer of Silicon Valley Bank Analytics before founding cannabis-focused private investment firm Privateer Holdings in 2011. Privateer Holdings formed Tilray in 2013.
Kennedy is surrounded by a strong executive team, including individuals with solid credentials spanning multiple industries. Tilray recently hired several new vice presidents who have impressive backgrounds with companies that market well-known consumer brands.
Analysts also probably have a favorable view of Tilray’s recent deals. The company announced a partnership with giant beer-maker Anheuser-Busch InBev in December to research non-alcoholic cannabis-infused beverages. In January, Tilray signed a revenue-sharing agreement with Authentic Brands Group (ABG) to market consumer cannabis products under ABG’s brands, including Nine West and Prince. The company quickly followed with…
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