Morningstar maintained the Buy rating on Tilray Inc.(TLRY:TSX)

STA Research
by: STA Research

Morningstar maintained the Buy rating and $18 target on Tilray Inc., with a $18 12 month target on the company’s stock. The analyst’s most recent action on the stock was increasing the target to $18 from $16 in March.

Based on the Canopy Growth Corporation stock forecasts from 14 analysts, the average analyst target price for Canopy Growth Corporation is CAD 13.21 over the next 12 months. Canopy Growth Corporation’s average analyst rating is Hold . Stock Target Advisor’s own stock analysis of Canopy Growth Corporation is Slightly Bearish, which is based on 2 positive signals and 4 negative signals. At the last closing, Canopy Growth Corporation’s stock price was CAD 8.99Canopy Growth Corporation’s stock price has changed by -0.94% over the past week, +0.96% over the past month and -76.18% over the last year.

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk adjusted returns

This stock has performed well, on a risk adjusted basis, compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile.

What we don’t like:

High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Negative cashflow

The company had negative total cash flow in the most recent four quarters.

Low Earnings Growth

This stock has shown below median earnings growth in the previous 5 years compared to its sector

 

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