June 17, 2019 / 6:35 PM / a year ago

BUZZ-Tilray: Brokerage cuts PT on regulatory delay for advanced cannabis forms in Canada

** Brokerage Compass Point cuts PT on medical marijuana co Tilray to $38 from $41

** Trims PT to reflect the near-term impact of the Canadian government’s announcement on Friday afternoon of a regulatory delay in permitting the sale of advanced forms of cannabis

** The delay of products such as vapes, beverages and edible products, pushed from mid-October to at least mid-December or later - brokerage

** Health Canada said on Friday that some edible cannabis products, extracts and topicals would be sold in physical or online stores from mid-December

** Such a regulatory delay certainly pushes out the timing of contribution to revenue from expected shipments - analyst Rommel Dionisio

** Says HEXO - TLRY’s major competitor noted an unexpected decline in recreational cannabis prices in recent months, which should also modestly affect Tilray’s near-term financial outlook

** Says that as more firms add production capacity, increased supply could drive down selling prices further in upcoming quarters in both recreational and medical use markets

** While shares of Hexo Corp down ~2.3%, Tilray up 3.3%

** 3 of 14 brokerages covering TLRY rate the stock “buy”, 10 “hold” and 1 “sell”; their median PT is $57

** Tilray stock down 42.3% YTD (Reporting By Arundhati Sarkar in Bengaluru)

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