Shares of cannabis firm Tilray Inc. soared by 10% premarket and gained 6% more intraday on Friday after scoring an upgrade from investment bank Jefferies, MarketWatch reported.

  • Tilray shares have gained 71% year-to-date, while Cannabis ETF THCX gained 36%.
  • The increase comes as Jefferies Analyst Owen Bennett upgraded Tilray to buy from underperform, raising the price target to $23 from $4.77.
  • Bennett cited benefits from the merger with rival firm Aphria Inc. which he described as a “perfect match,” noting a leading portfolio of brands in Canada along with an efficient cost structure.
  • Bennett likewise noted that the European market is picking up, and Tilray is positioned to succeed with Aphria’s German positioning.
  • “In the US, the combined company’s broader consumer goods portfolio and strong balance sheet supports excellent optionality around both US THC and CBD,” Bennett said in a note to clients.
  • The analyst expects combined sales growing 33% in the pro-forma fiscal 2020 to fiscal 2024 to $1.6 billion.

TLRY:TSE is up 17.24%.