TLRY Stock Price and Forecast: Tilray Inc downgraded by Piper Sandler but raises price target to $26

Update February 18: Shares in Tilray brushed off a downgrade from Piper sandler on Thursday and remain strong. TLRY shares are trading at $33.61 in Thursday's pre-market, a gain of 6%. Piper Sandler raised the price target from $15 to $26 but downgraded it's rating to neutral.

TLRY has latched onto the pot boom for 2021 as retail traders look to jump on the next big thing.

Cannabis shares have been the hot trend of 2021 as investors look for the US market to open up and follow the Canadian liberalization of cannabis markets. Canada opened up its cannabis market in 2018. The new US administration, under President Biden, is seen as more amenable to opening up the cannabis market, compared to the previous administration.

Coupled with this has been the flood of new retail entrants to the trading arena. With time to spare and in some cases stimulus cash to invest, they have been wielding considerable influence on the stock market so far in 2021.

Tilray is a Canadian cannabis grower and as a result, the bulk of its sales are in Canada. But it has some other strings to its bow. Tilray has production facilities in Europe to try and tap into that growing market. Tilray also has a partnership with AB InBev to produce cannabis-infused drinks.

TLRY Stock news

Tilray shares have been on a rollercoaster ride, shooting up to $76 on Wednesday before collapsing back to $31 at the time of writing.

The rise-and-fall has largely been attributed to the Reddit phenomenon, with TLRY and other cannabis stocks trending on the retail websites and the interest skyrocketing. Some cannabis stocks also were significantly shorted which led to the rally. 

On Thursday many market commentators and analysts downgraded their views on cannabis stocks which saw sharp declines across the sector.

GLJ analyst Gordon Johnson reiterated his sell rating on Tilray (TLRY) with a $0 price target.

Should I Buy TLRY now?

Well, the answer with all these speculative shares is to be prepared for losses and only invest what you can afford to lose.

TLRY is a highly speculative play and as can be seen from its price action, discretion and risk management is required. 

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