The marijuana stock market is getting better and Wall Street thinks one company will excel
Aurora Cannabis may be the name most think of when considering marijuana stocks – and with good reason – but it isn’t the only one to keep in mind. Although a relatively new subject on Wall Street (there are only three marijuana stocks publicly traded on the NYSE and two on NASDAQ), investment analysts are starting to show more support for another company, one that recently signed several major deals, such as one with Anheuser-Busch and another with Authentic Brands Group (ABG).
Tilray is garnering a lot of attention on Wall Street, with analysts predicting a bullish future. One analyst forecasts that the company’s stock will increase by over 150% in the next 12 months. At the opposite end of the spectrum, the reserved estimate puts Tilray’s growth at 8%.
Analysts’ logic is sound. Tilray has a strong management team led by CEO Brendan Kennedy – a former chief operating officer and managing director of Silicon Valley Bank Analytics. He formed Privateer Holdings, a cannabis-focused private investment firm, in 2011, which later created Tilray.
Tilray also inked a deal with Anheuser-Busch (A-B) last December that will see both companies work together to explore the cannabis beverage industry. With a powerhouse such as A-B, Tilray will be able to hit the ground running in a market that is expected to hit $600 million within four years.
More recently, Tilray signed a branding agreement with ABG, the company behind more than 50 brands, including Juicy Couture, Nine West and Aeropostale. That arrangement will see ABG create cannabis-branded products and Tilray is going to see 49% of the revenue generated from the sales.
As it develops a stronger foothold, Tilray will more than likely achieve one more feat that would drive its price higher. While other companies have received significant investments in their operations, Tilray has not (the A-B deal didn’t see any money go to the company – just to the new endeavor). This is bound to change in the near future and those holding Tilray stock will reap the benefits.