Shares of cannabis major Tilray Brands (NASDAQ:TLRY) are on the rise today after it closed the acquisition of eight beer and beverage brands from Anheuser-Busch (NYSE:BUD). The transaction makes Tilray the fifth-largest craft brewer in the U.S., taking the company’s market share in the country to 5%.
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Importantly, the EBITDA-accretive deal is expected to strengthen Tilray’s operations in the beverage sector. The company sees scope for innovation in multiple categories, including non-alcoholic beverages, energy, and nutritional drinks.
Further, the transaction is expected to generate craft beer pro-forma revenue of $250 million while also boosting Tilray’s distribution reach and tripling its beer sales volume to 12 million cases.
Amid delayed cannabis legalization in the U.S., Tilray has adopted a diversified growth strategy. When legalization does happen, Tilray aims to become a dominant market player as a CPG company in the country.
What is the Price Target for TLRY?
Overall, the Street has a consensus price target of $2.55 on Tilray, alongside a Moderate Buy consensus rating.
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