Stock Market

Tilray (NASDAQ:TLRY) is headquartered in Canada, but TLRY stock would certainly benefit from federal-level cannabis decriminalization in the U.S.

This type of legislative reform won’t happen overnight, however. It’s still fine to hold a small stake in TLRY stock, but be realistic with your expectations and consider extending your investment timeline.

Few stock sectors are as sensitive to federal-level legal changes as the cannabis segment. Tilray remains a top-tier cannabis producer, but the company is more diversified than you might think it is. So, even if pro-cannabis reform is gradual in the U.S., keep an eye on Tilray and think about holding a few shares through 2024 and beyond.

What’s a Realistic Price Target for TLRY Stock?

Unfortunately, the cannabis market excitement of 2018 is in the rear-view mirror now. Back then, a price target of $150 for TLRY stock was realistic. Yet, in 2023 and 2024, Tilray’s investors should target $3 and then $5.

If you’re going to have a dog in the race, Tilray is as good a cannabis industry pick as any. As you probably recall, Tilray merged with Aphria to become the world’s biggest cannabis company by market capitalization.

Today, Tilray continues to introduce high-quality specialty cannabis product lines, including a host of new strains, aromas and flavors for canna-connoisseurs. Tilray has diversified its business model outside of cannabis production.

Specifically, Tilray is making waves in the craft beer niche market. The company agreed to acquire eight beer/beverage brands from Anheuser-Busch (NYSE:BUD) making it the fifth-largest craft beer company in the U.S.

Hence, these craft beer brands should help to broaden the Tilray’s U.S. presence.

Good News for Tilray

Recently, the U.S. Department of Health and Human Services called for cannabis to move from Schedule I (a highly restrictive category) to Schedule III (which is less restrictive). Still, there’s a long way to go before full U.S. decriminalization of cannabis will be a reality.

On the heels of that cannabis industry victory, the SAFER Banking Act is heading for consideration in the Senate.

If that bill becomes a law, it could provide access for registered U.S. cannabis businesses to previously unavailable small business loans while also offering various financial protections.

It’s not the final chapter of the story, but it’s a significant one nonetheless. If the SAFER Banking Act eventually passes, full U.S. decriminalization would probably be next.

That would be terrific news for Tilray and its stakeholders, so just be patient and stay tuned for further developments.

TLRY Stock Could Make Huge Moves in 2024

Think about why the Tilray share price has declined so much since 2018. To a certain extent, it’s because U.S. pro-cannabis legislation stalled. Now, it’s being revived and cannabis decriminalization could become a reality in the coming quarters.

Meanwhile, Tilray is venturing into the craft beer market and is still a premier player among cannabis producers. That’s exciting, but be patient with Tilray, and with the gradual pace of pro-cannabis legal reform.

TLRY stock will probably have its moonshot moment in 2024, with further price spikes in 2025 and afterwards. Therefore, it’s fine to take a share position in Tilray now as long as your timetable extends beyond 2023.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.