Trump Signs Executive Order Rescheduling Cannabis, Industry Outlook Uncertain
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Policy Shift: Trump's executive order reclassifies cannabis from Schedule I to Schedule III, potentially reducing roadblocks for cannabis companies in clinical research and financial regulations, thereby improving relationships with banks.
- Tax Implications: With the reclassification, cannabis companies will no longer be subject to the 280E tax provision, allowing them to deduct business expenses like rent and utilities, which is expected to enhance profitability.
- Market Reaction: Despite the policy change being viewed positively, cannabis stocks plummeted following the executive order, reflecting market concerns over the uncertainty of implementation details and actual impacts.
- Investment Outlook: The current uncertainty in the cannabis market poses risks for investors; while the policy may yield long-term benefits, short-term volatility suggests it is more suited for day traders rather than long-term investors seeking wealth creation.
TLRY
$10.42+Infinity%1D
Analyst Views on TLRY
Wall Street analysts forecast TLRY stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for TLRY is 4.45 USD with a low forecast of 0.85 USD and a high forecast of 10.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
2 Buy
0 Hold
1 Sell
Moderate Buy
Current: 11.160
Low
0.85
Averages
4.45
High
10.00
Current: 11.160
Low
0.85
Averages
4.45
High
10.00
About TLRY
Tilray Brands, Inc. is a global lifestyle and consumer packaged goods company. The Company operates through four segments: Cannabis operations, Distribution business, Beverage alcohol business and Wellness business. The Cannabis operations, which encompasses the production, distribution, sale, co-manufacturing and advisory services of both medical and adult-use cannabis. The Beverage alcohol operations, which encompasses the production, marketing and sale of beverage alcohol products. The Distribution operations, which encompasses the purchase and resale of pharmaceuticals products to customers. The Wellness products, which encompasses hemp foods and cannabidiol (CBD) products. The Company offers a portfolio of adult-use brands and products and expands its portfolio to include new cannabis products and formats. Its brands include Good Supply, RIFF, Broken Coast, Solei, Canaca, HEXO, Redecan, Original Stash, Hop Valley, Revolver, Bake Sale, XMG, Mollo, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
