Tilray Brands (NASDAQ:TLRY) shares continued to gain momentum on Tuesday after the cannabis firm saw its price target boosted by Jefferies analysts.
The analysts, who maintained a ‘Buy’ rating on Tilray, upped their price target to $2 from $1.50, citing growing optimism about a potential shift in US federal cannabis policy.
There are hopes cannabis will be rescheduled from a Schedule I to a Schedule III substance, which could provide cannabis companies like Tilray with considerable benefits, including lower tax burdens and easier access for research.
Jefferies analysts see the potential reclassification as “not legalization, but progress.”
They see Tilray as potentially the largest beneficiary of this regulatory shift, noting it "has the brand strength, scale, and balance sheet to capture the opportunity in cannabis."
Shares of Tilray added 4.2% at $1.45 on Tuesday, having gained more than 36% in the past five trading days.