Tilray (TLRY) Stock Soars! Is the Cannabis Rally Just Getting Started?

By: María Fernández Published On: 25/08/2025

Finance Finance Finance Finance Finance

Tilray's Stock Surge: What's Fueling the Fire?

Tilray Brands (TLRY) is making headlines as its stock price experiences a significant surge. This isn't just a minor blip; it's a rally driven by a confluence of factors, including potential U.S. cannabis reclassification and strategic European expansion.

President Trump's suggestion to reclassify marijuana as a Schedule III substance has ignited optimism. This move signals a potential easing of restrictions, opening doors for greater access to medical cannabis. For Tilray, this translates to a significant market opportunity.

Adding fuel to the fire, Tilray's partnership with Molteni to expand its presence in Europe is further boosting investor confidence. This international expansion demonstrates Tilray's commitment to growth beyond the U.S. market.

Is Tilray Overvalued? Experts Weigh In

While the market buzz is undeniable, some analysts suggest caution. According to community narratives, Tilray might be overvalued by approximately 24% compared to its fair value. This valuation considers anticipated growth, margins, dilution, and analyst price targets.

The overvaluation perspective highlights the importance of execution. While Tilray's international cannabis business is experiencing rapid organic growth, achieving projected profitability improvements remains crucial.

The Impact of Potential U.S. Reclassification

The potential reclassification of cannabis by the U.S. Drug Enforcement Administration (DEA) is a game-changer for the entire industry. Moving cannabis from Schedule I to Schedule III would not only acknowledge its medical applications but also significantly impact tax regulations.

Currently, cannabis businesses face limitations under Section 280E of the U.S. tax code. Reclassification could alleviate these restrictions, providing substantial financial relief to cannabis companies like Tilray.

Is Now the Time to Invest in Tilray?

Tilray's recent performance and future prospects present a compelling investment narrative. However, potential investors should carefully consider the risks and rewards before making any decisions. The market's enthusiasm is tempered by concerns about overvaluation and the need for successful execution of growth strategies. Monitoring regulatory developments and Tilray's financial performance will be key to assessing its long-term potential.