04:59 PM EDT, 04/09/2024 (MT Newswires) -- According to Michael Lavery in a note published late Tuesday afternoon, Piper Sandler believes Tilray Brands ( TLRY ) "stands out from competitors" with direct access to the EU, but it also expects cannabis stocks (TLRY included) will continue to trade largely on US regulatory expectations.

Lavery noted the US regulatory outlook is unclear, and there is no clarity on how any potential rescheduling of cannabis in the US may take shape. Piper Sandler expects potential M&A to bulk up its beer portfolio a bit further, but noted that current retail sales declines make adding shelf space more challenging. Lavery lowered the 2024 estimated sales from near US$810M to near US$790M and 2025 estimated sales from near US$875M to near US$865M. He maintained a price target of US$2.00.

Tilray shares closed down C$0.71, or 20%, to C$2.79 on the Toronto Stock Exchange after reporting fiscal Q3 results.