Stock

Tilray stock: Canaccord Genuity sees a 75% upside

A day after Tilray Inc (NASDAQ: TLRY) announced a strategic partnership with Hexo Corp (TSE: HEXO), Canaccord Genuity upgraded both cannabis companies to “buy”.

How does the deal benefit Tilray stock?

The agreement between the two Canadian LPs will see Tilray acquire over $200 million of Hexo Corp’s senior secured convertible notes that it can convert into roughly 37% of the latter’s outstanding common shares.

The initial conversion price, as per the press release, will be 90 Canadian cents. Analyst Matt Bottomley wrote:

The conversion option enables Tilray to participate in longer-term equity upside should Hexo successfully implement its ‘Path Forward’ plan, while mitigating downside risk given the secured nature of the notes.

Bottomley sees an upside to $9.0 a share in Tilray that represents a 75% gain in the stock price from here.

Why is Bottomley bullish on Hexo Corp?

The analyst’s speculative buy rating on Hexo Corp comes with a price target of C$1.25 a share – also a 75% upside from where the stock is trading at the time of writing. Previously, he had a PT of C$1.0 a share.

Bottomley expects the three-year extension on the secured notes and Tilray as a commercial partner to help Hexo with its turnaround objectives. The sharp sell-off in both stocks was among other reasons why he’s bullish.  

Hexo Corp noted a 29% increase in revenue in its latest reported quarter.

The post Tilray stock: Canaccord Genuity sees a 75% upside appeared first on Invezz.

Disclaimer: MonopolyWinnersUpdates.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 MonopolyWinnersUpdates.com. All Rights Reserved.

To Top