5 Best Tobacco and Cigarette Stocks To Buy

4. Tilray Brands, Inc. (NASDAQ:TLRY)

Number of Hedge Fund Holders: 16

Tilray Brands, Inc. (NASDAQ:TLRY) is a New York-based pharmaceutical, cannabis-lifestyle, and consumer packaged goods company, with operations in Canada, Australia, New Zealand, and Latin America. The company also has growing facilities in Germany and Portugal. On November 7, Tilray Brands, Inc. (NASDAQ:TLRY) announced the acquisition of Montauk Brewing Company, a craft brewer in Metro New York. The acquisition is expected to be accretive to Tilray Brands, Inc. (NASDAQ:TLRY)’s adjusted EBITDA. Tilray is moving into the alcohol business by acquiring breweries and distilleries. 

On November 1, Bernstein analyst Nadine Sarwat initiated coverage of Tilray Brands, Inc. (NASDAQ:TLRY) with a Market Perform rating and a $3.90 price target. Tilray Brands, Inc. (NASDAQ:TLRY)’s cannabis business has “best-in-class” gross margins and should be free cash flow positive this fiscal year, the analyst told investors in a research note. However, like other huge licensed producers, Tilray Brands, Inc. (NASDAQ:TLRY) has suffered from significant share loss in Canadian cannabis, noted the analyst. He said that he would be more bullish if Tilray Brands, Inc. (NASDAQ:TLRY) regains meaningful share in Canada and/or Germany legalizes recreational cannabis.

According to Insider Monkey’s data, 16 hedge funds were bullish on Tilray Brands, Inc. (NASDAQ:TLRY) at the end of Q3 2022, compared to 14 funds in the last quarter. D E Shaw is a prominent stakeholder of the company, with 3.4 million shares worth $9.3 million.