Analyst Note| Kristoffer Inton |
Tilray reported a decent fourth quarter and end to fiscal 2022, highlighted by its 13th straight quarter of positive adjusted EBITDA—a notable achievement as some Canada peers are years from breakeven. Gross cannabis revenue was up 23% from the third quarter, highlighted by an end to its Canada market struggles. Both Canada medical and adult-use sales grew sequentially, a relieving turnaround from the prior quarters’ declines. We continue to believe that more revenue growth and margin expansion is ahead but think it will take longer than we previously thought. As a result, we’ve cut our fair value estimates to $12 and CAD 15 per share, down from $14 and CAD 18, respectively for no-moat Tilray.