Piper Sandler on TLRY; Lowering Estimates on Softer Momentum2022-06-14 04:44:34 PM ET (MT Newswires)
04:44 PM EDT, 06/14/2022 (MT Newswires) -- Michael Lavery over at Piper Sandler believes Tilray (TLRY.TO, TLRY) "stands out" from competitors with its direct access to the EU and its positive EBITDA margins, though it noted further share loss in the Canadian recreational market, softer than expected beer sales, and an unfavorable currency exchange rate are weighing on momentum in Q4 FY22. Lavery also expects these headwinds to likely continue. Piper Sandler lowered its sales estimates by near $60 million and its margin assumptions by 100bps in FY23. It also lowered its F22E sales from near $640M to near $625M and its F23E sales from near $670M to near $610M. Piper Sandler lowered its EV/Sales multiple from near 4x to near 3x, on share headwinds and a slower revenue growth outlook, and lowered its target from $6 to $3.