Tilray Stock Surges as Cannabis Reform Gains Momentum

Shares of Tilray jumped nearly 20% on Monday, extending a five-session rally that has boosted the cannabis producer's stock by 28%. The surge followed a bullish call from Jefferies analyst Kaumil Gajrawala, who raised his price target from $1.50 to $2 while maintaining a Buy rating. He noted that sentiment around cannabis companies is improving, with upcoming regulatory decisions expected to reshape the industry.

The new price target implies about 44% upside from current levels, fueling excitement among retail and institutional investors alike.

Why Analysts Are Bullish on Tilray

Gajrawala pointed to former President Trump's push to reclassify cannabis from Schedule I to Schedule III. Such a move would represent a major policy shift by easing taxes, expanding research opportunities, and improving market access. "Tilray is the biggest potential beneficiary," the analyst said, citing its position as one of the largest Canadian cannabis producers with growing international exposure.

Although reclassification would not be full legalization, analysts believe it could serve as a powerful catalyst. Broader acceptance, combined with strong public support for cannabis reform, could provide Tilray with both short- and long-term growth opportunities.

Trading Surge Signals Renewed Interest

The optimism triggered a wave of trading activity. On Monday alone, more than 150 million shares of Tilray changed hands — nearly three times the 50-day average.

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