Jefferies Reiterates 'Buy' Rating on Tilray Brands Despite Lower Earnings Forecasts
Jefferies has reiterated a 'Buy' rating on Tilray Brands (NASDAQ:TLRY), despite lowering its fiscal 2027 and 2028 earnings forecasts. The firm cited strong quarterly revenue of $282 million, exceeding the consensus estimate by over $30 million, as evidence that Tilray is transitioning into a diversified consumer products company with growth in beverage alcohol, cannabis, distribution, and wellness segments. The brokerage noted that management guided to fiscal 2027 adjusted EBITDA between $68 million and $75 million—below the consensus of $84 million—which led Jefferies to reduce its own forecast. However, it remains optimistic about long-term growth opportunities from BrewDog integration, a partnership with Carlsberg, and international medical cannabis operations. Jefferies acknowledged near-term challenges in scaling profitability but maintained confidence over an 18-month horizon due to improving beer margins, beverage expansion, and regulatory tailwinds. The firm also highlighted Tilray's strong balance sheet as a strategic advantage for future acquisitions.
Tickers: $TLRY
Topics: diversification strategy earnings guidance stock analysis