Tilray company (TLRY.US) is an American pharmaceutical company specializing in the production and supply of cannabis and also medical marijuana products.
The cannabis producer's shares are seeing big rises on reports that cannabis could be legalized in the US as early as next week. Legalization at the federal level would likely have a significant impact on the consumption of cannabis-infused goods and would help companies recover from recent declines.
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Create account Try a demo Download mobile app Download mobile appThe US House of Representatives will vote for the first time on a bill dubbed the 'MORE' Marijuana Opportunity, Reinvestment, and Expungement Act. The MORE Act was already voted on in the House of Representatives in 2020 but the US Senate blocked it.
The company's Q4 2021 report was successful. Tilray's net revenue increased by almost 20% to USD 155m compared to Q3 2021. Net profit was $6m compared to a loss of $89m in the previous quarter. EBITDA was $13.8 million, up 8% from the previous quarter, and it was the 11th consecutive quarter of positive EBITDA.
Gross margin in the cannabis segment is at high levels and was 43% for Tilray.
The company also reported cost synergies of $70m; against a planned $80m ahead of schedule and communicated a plan to generate $20m of synergies in FY2023. Q4 2021 gross profit was $32.8m, down 7% versus $35.3m in the previous quarter of 2021.
Tilray shares are up nearly 17% in pre-market trading. In early March, analysts at Canaccord Genuity raised their target price for Tilray shares to $9, changing their rating from 'Neutral' to 'Buy'.
Tilray (TLRY.US), D1 interval. The stock has been moving in a downtrend since the fall of 2021, losing nearly 70% of its valuation along the way. Yesterday's close coincided with the 23.6 Fibonacci retracement level. The increase by 17% in the pre-session trading indicates the probable breaking of the resistance at this level after the market opening. In such a situation, the nearest resistance would be in the vicinity of USD 8.50, which coincides with the 38.2 abolition, which may be tested already next week. However, a scenario in which quotations rise after the opening remains possible, but bulls may not withstand the selling pressure. The nearest resistance in such a scenario can be considered the levels of USD 7.50 where the price peaks from mid-February 2022 are located. Declines after reaching this border could deepen the stock's repricing. Source: xStation 5
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