Tilray’s European Ambitions Gain Momentum with Italian Market Consolidation

Tilray US88688T1007

Shares of Tilray continued their upward trajectory in pre-market trading on Friday, building on recent gains. The catalyst for this positive movement is the company's strategic launch of a new medical cannabis platform in Italy, a move designed to consolidate its European operations. Following a period of significant volatility, investors are now assessing whether this operational expansion can help narrow the valuation gap with its peers.

This strategic news arrives as the market continues to digest Tilray's latest quarterly results, released on January 8. The company reported record revenue of $217.5 million, representing a 3% year-over-year increase and surpassing consensus estimates. A standout performer was the international cannabis business, which saw robust growth of 36%.

Progress was also evident on the profitability front. The company posted an adjusted loss per share of -$0.02, meeting expectations, while managing to reduce its net loss to $43.5 million.

Despite these operational improvements, valuation remains a key topic of debate. Analysts at Roth MKM recently lowered their price target from $20 to $10, citing the need for consistent profitability. However, the stock's price-to-sales (P/S) ratio suggests a potential undervaluation. Trading at a P/S multiple of 1.2, Tilray's shares sit significantly below the peer group average of 11.7.

A Unified European Platform Takes Shape

The immediate driver for investor interest is a restructuring of the company's Italian business. Tilray confirmed the launch of Tilray Medical Italia, a new entity that will replace the former FL Group. This initiative is a central part of a broader plan to streamline and unify the company's European processes, aiming to create a scalable platform for the entire continent.

Regulatory approval provides a critical foundation for this expansion. The company stated that its new product portfolio—which includes various medical cannabis flowers and oil formulations—has received authorization from the Italian Ministry of Health. To ensure distribution, Tilray has strengthened its partnership with Molteni Farmaceutici. This collaboration will facilitate the sale of EU-GMP-certified products through Italian pharmacies and hospitals.

Technical Levels and Forward Look

In the near term, market participants are watching the 200-day moving average around $8.88, which is viewed as a crucial level of support that must hold. The ultimate financial impact of the Italian expansion will become clearer when Tilray reports its third-quarter fiscal results on April 13, 2026.