Piper Sandler analyst Michael Lavery on Wednesday cut his price target on Tilray Brands Inc. to $3 a share from $6 in the face of tough market conditions. While Tilray’s direct access to the European market and its positive margins on its earnings before interest, taxes, depreciation and amortization (Ebitda) allow it to stand apart from competitors, the company faces headwinds from further market share loss in the Canadian adult use cannabis market as well as from softer-than-expected U.S. alcohol sales from its Sweetwater brand and an unfavorable currency exchange rate, Lavery said. Lavery cut his 2022 and 2023 sales estimates for Tilray and reiterated a neutral rating on the stock. Shares of Tilray are down 55.6% in 2022 compared to a loss of 53.8% by the Cannabis ETF .

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