Tilray (TLRY) Stock Surges 20% on Analyst Upgrade and Cannabis Policy Optimism

Tilray Brands (TLRY) surged nearly 20% on Monday, extending a five-session rally that has lifted the cannabis producer by 28%. The MOVE followed a price target upgrade by Jefferies analyst, who raised his target from $1.50 to $2 while maintaining a Buy rating. Improving sentiment around cannabis names and upcoming regulatory decisions were cited as key drivers.

The analyst highlighted the potential reclassification of cannabis from Schedule I to Schedule III as a "meaningful shift in federal stance," which could improve access, ease taxes, and allow more research. Tilray, as the largest potential beneficiary, stands to gain significantly from this regulatory shift. Strong public support and ongoing reform discussions in Congress could further bolster momentum.

Trading volume in Tilray stock spiked to over 150 million shares, nearly triple the 50-day average, reflecting heightened investor interest. While reclassification falls short of full legalization, it remains a transformative catalyst for Canadian producers like Tilray.