TLRY
The 3 Most Undervalued Cannabis Stocks to Buy in April 2024
Cannabis companies with focus on profitability and global expansion in the medicinal cannabis market
Tilray Brands(NASDAQ:TLRY) is another stock that has stabilized after a big correction in the last few years. In the last 12 months, TLRY stock has remained sideways. I expect a big breakout on the upside after this period of consolidation.
In 2023, Tilray focused on acquisitions for diversification. The company has positioned itself as the fifth largest craft beer brewer in the U.S. Presence in the U.S. also serves as a strategic infrastructure for expansion of the cannabis business on potential federal level legalization.
However, even without legalization, the company’s cannabis business has witnessed healthy growth. For Q2 2024, Tilray reported 31% year-on-year growth in net cannabis revenue from Canada. For the same period, international cannabis revenue growth was 55%. This was fuelled by the medicinal cannabis business.
On the financial front, Tilray has guided for positive adjusted free cash flow for the current financial year. With healthy growth, I expect FCF to accelerate in the coming years. This will provide flexibility for expansion and investment in research driven medicinal cannabis business.