Tilray (TSE:TLRY) Surges After Landing Groundbreaking Italian Cannabis Deal

Tilray just scored a first-mover advantage in Europe’s most promising cannabis market—and investors are rushing in.

Why Italy Matters

The Mediterranean nation represents the EU’s largest medical marijuana opportunity. Tilray’s new distribution deal cracks open a €1.2 billion market that’s growing at 30% annually.

Short Squeeze Fueling Gains

With 18% of shares sold short, TLRY’s 15% intraday spike forced bears to cover positions—classic ‘buy the rumor, sell the news’ action. Analysts warn the rally could fade faster than a crypto influencer’s credibility.

Long Game vs. Quick Profits

While day traders chase volatility, Tilray’s real play is establishing distribution moats before EU legalization dominoes fall. Because nothing says ‘growth stock’ like betting on bureaucratic processes.

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Tilray is now the first company ever to offer “…medical cannabis flower for therapeutic use,” reports note. The Ministero della Salute in Italy gave Tilray the necessary authorization, and for the first time, this product will be available for use in Italy. Tilray has, reports noted, a presence in Italy already, but not for medical cannabis flower. Tilray will have three new varieties of said flower available, and will be available through pharmacies throughout Italy.

Tilray has been operating in Italy since May of 2023, and the expansion of the role allows Tilray to offer up more of its product line to Italians in need. Chief strategy officer and head of international Denise Faltischek noted, “This milestone underscores the vital role of medical cannabis as a therapeutic medicine for patients in need, supporting their health and well-being. We are proud to expand our medical cannabis portfolio in Italy with the introduction of our Tilray Medical high-quality, EU-GMP certified medical cannabis products that uphold the highest standards in patient care.”

More Than Just Weed

This news comes not long after an earlier report noting that Tilray was also expanding its presence in drinks, particularly in beer. With the marijuana regulatory environment still proving oddly strict in many places—particularly at the federal level in the United States—and competition getting oddly thick in Canada, Tilray has needed to branch out, and beer proved an odd but helpful target for expansion.

Worse, noted CEO Irwin Simon, there are only so many options to shore up the stock price. Simon noted that Tilray is not “…the ugliest cannabis company, certainly not the ugliest beer company out there.” But still, Tilray needs to find “…other opportunities,” and soon, lest the investors get tired of waiting and go off to pursue greener pastures.

Is TLRY Stock a Good Buy?

Turning to Wall Street, analysts have a Moderate Buy consensus rating on TSE:TLRY stock based on two Buys and four Holds assigned in the past three months, as indicated by the graphic below. After a 77.38% loss in its share price over the past year, the average TSE:TLRY price target of C$1.28 per share implies 155.35% upside potential.

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