(Bloomberg) -- The street's biggest bull on Tilray Inc. is feeling significantly less bullish, slashing her price target on the pot stock by 60%.
Vivien Azer at Cowen & Co. cut her 12-month target to $60 from $150, but still believes the stock's recent weakness is a buying opportunity. Tilray jumped as much as 17% Tuesday, heading for its biggest gain since January. The stock has lost about 90% from the intraday high of $300 it reached in September 2018.
The Canadian cannabis landscape “has been challenging over the last few months, as too few stores, supply shortages and a lack of novel products have hampered category development,” Azer wrote in a note published Tuesday. “We would argue that TLRY has been the most impacted by weak industry supply as its asset-light model was initially overly reliant on third-party supply.”
She maintained her outperform rating, however, citing Tilray's proactive moves to address capacity constraints, its strong position to enter the U.S. CBD market and growing international opportunities. She also believes the Canadian industry will work out its problems eventually, becoming a C$12 billion market by 2025.
With Azer's lower price target, Michael Hickey at Benchmark Co. becomes Tilray's biggest bull with an $80 target.
To contact the reporter on this story: Kristine Owram in Toronto at kowram@bloomberg.net
To contact the editors responsible for this story: Brad Olesen at bolesen3@bloomberg.net, Steven Fromm
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