• Recently, President Donald Trump signed an executive order reclassifying cannabis as a Schedule 3 drug, easing access to banking services and enabling normal business expense deductions for operators in the sector.
• This regulatory shift could be particularly important for Tilray Brands, which may be able to leverage its existing hemp operations to expand more rapidly into the U.S. market.
• We will now examine how easier banking access and expense deductions in the U.S. could influence Tilray Brands’ existing investment narrative.

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Tilray Brands Investment Narrative Recap

To own Tilray Brands, you need to believe it can convert its diversified cannabis, hemp, and beverage platform into sustainable revenue while eventually improving cash generation. Trump’s move to reclassify cannabis to Schedule 3 directly addresses Tilray’s biggest near term catalyst easier U.S. banking and tax treatment while its most pressing risk remains continued large losses and cash burn despite any regulatory progress.

Among recent developments, Tilray’s preparations for a reverse stock split between 1 for 10 and 1 for 20 stand out here, because they intersect with the Schedule 3 news by highlighting how dependent the equity story still is on restoring market confidence and maintaining Nasdaq listing, even as regulatory tailwinds potentially broaden the company’s U.S. opportunity set.

Yet, while regulation may be moving, investors should be aware that Tilray’s long history of net losses and negative free cash flow could still…

Read the full narrative on Tilray Brands (it’s free!)

Tilray Brands’ narrative projects $940.4 million revenue and $193.4 million earnings by 2028.

Uncover how Tilray Brands’ forecasts yield a $16.17 fair value, a 66% upside to its current price.

Exploring Other Perspectives

Nineteen members of the Simply Wall St Community value Tilray between US$1.47 and US$16.17, showing how far opinions on upside potential can stretch. You should weigh that spread against the company’s ongoing losses and cash burn, and consider how each view handles the risk that profitability remains elusive even if U.S. cannabis rules keep improving.

Explore 19 other fair value estimates on Tilray Brands – why the stock might be worth less than half the current price!

Build Your Own Tilray Brands Narrative

Disagree with existing narratives? Create your own in under 3 minutes – extraordinary investment returns rarely come from following the herd.

• A great starting point for your Tilray Brands research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.
• Our free Tilray Brands research report provides a comprehensive fundamental analysis summarized in a single visual – the Snowflake – making it easy to evaluate Tilray Brands’ overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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