08:44 AM EDT, 07/31/2024 (MT Newswires) -- Piper Sandler (PS) noted that TLRY reported US$229.9 million Q4 2024 revenue, below its $233.2M estimate, and Tilray's adjusted EBITDA of $29.5M was just below its $30.2M estimate. But PS noted the company also gave F25 guidance for revenue of $950-1,000M behind strong growth in Germany.

PS said: "We model more robust gains than we had previously, but are conservatively a bit below its guidance range. We expect gross margin improvement in its Beverage Alcohol segment from repatriated production, though its acquired beer brands retail sales continue to decline. Its hemp beverage rollout is measured, with a test launch in Texas and New Jersey."

PS believes 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. PS raised its F25E sales from near $865M to near $915M and our F26E sales from $875M to $970M. It maintains its $2 target.