Some analysts believe the stock could increase by 2,000% within 10 years
Tilray Brands shares have not had a positive 2022 so far. With headwinds hitting the marijuana industry and the ongoing bear market in growth stocks, Tilray stock has lost an incredible 58% of its value so far this year. However, experts claim that this beaten-down cannabis stock has enough potential to generate a return in excess of 2,000% by the end of the decade.
Tilray is increasingly proving to have a smaller and smaller share of the Canadian cannabis market as it has turned its focus to other markets. This has undoubtedly kept its shares under pressure, especially as it continues its expansion into arenas with uncertain payouts, such as craft beer and spirits.
The highly competitive nature of the Canadian cannabis market has led companies like Tilray to explore other very similar terrain in the consumer-packaged goods industry, such as alcohol. While this move may be unpopular with investors, experts believe the company knows what its horizon is.
The number of players in the game will shrink as the industry matures. There will always be bankruptcies and a combination of acquisitions and mergers. It is projected that by 2030, there will be at most five large-cap companies dominating the global cannabis industry. This has already been seen in traditional markets such as tobacco and alcohol.
This consolidation phase is likely to be driven by key regulatory developments, such as federal reform in the US. This being the case, Tilray is uniquely positioned to capitalize on these catalysts in the longer term. There is no doubt that Tilray stands out as an intriguing growth play for investors with a long-term perspective.