Cannabis company Tilray downgraded to sell by Benchmark

Benchmark analyst Mike Hickey on Friday downgraded Tilray Brands Inc.
TLRY,
-1.08%
to sell and set a price target of $3 a share after the cannabis company disclosed retail market share losses in Canada to 8.3% in its fiscal fourth quarter, from 10.2% in the third quarter and 12.8% in the second quarter. “We are not convinced ‘corporate cannabis’ can create compelling products or brands in Canada,” Hickey said. “We estimate TLRY is also losing market share in pre-rolls and vapes, a category it was highlighting strength in the prior quarter.” On the plus side, Tilray’s 2023 outlook exceeded consensus view by analysts and it beat its fourth-quarter targets for revenue and adjusted profit. But Hickey said he remains cautious that “newly announced profit growth primarily reflects newly announced revenue and cost synergies and are potentially masking continued deterioration from its core Canadian cannabis business.” Shares of Tilray are down 48.1% in 2022 compared to a loss of 56% by the Cannabis ETF
THCX,
+2.13%
and a drop of 22.3% by the Nasdaq
COMP,
+1.14%.