Tilray’s European Push Faces a Sell Rating Despite UK Distribution Deal

Tilray US88688T1007

Tilray Brands is expanding its footprint in Europe, yet investor sentiment soured on the stock after a fresh downgrade. The cannabis and consumer goods company announced a new UK distribution arrangement on February 12, 2026, but a market observer trimmed the opinion a couple of days later.

On February 12, Tilray Pharma disclosed a strategic partnership with Smartway Pharmaceuticals to broaden the distribution of pharmaceutical products across the United Kingdom. The collaboration aims to widen access to Tilray?s offerings in pharmacies and hospitals, reinforcing the company?s European expansion strategy.

This move continues Tilray?s recent push deeper into Europe. In January, the firm rebranded its Italian subsidiary FL Group as Tilray Medical Italia to strengthen its position in the MedCann market there. In early February, CC Pharma, Tilray?s German unit, earned recognition as a ?TOP 100 Innovator? in Germany.

Analysts see shrinking valuation upside

Despite the improving operational trajectory, sentiment among analysts has cooled. Wall Street Zen trimmed Tilray Brands from Hold to Sell on February 14, 2026. The current consensus still lists Hold as the baseline, comprising one Buy, six Holds, and one Sell, but the average price target sits at $13.33 ? well above Tilray?s trading range of about $7.51 to $7.58 per share.

Revenue gains contrast with ongoing losses

In the second quarter of fiscal 2026, Tilray reported a quarterly revenue of $218 million, a new high for the period. Growth was led by a 36% rise in international cannabis revenues and a 6% increase in Canada?s adult-use cannabis segment. However, earnings per share came in at a loss of $0.41. Management reaffirmed guidance for adjusted EBITDA of $62 million to $72 million for the year.

Key data points:

• Distribution deal with Smartway Pharmaceuticals (UK) dated February 12, 2026
• Downgrade to Sell by Wall Street Zen dated February 14, 2026
• Average price target: $13.33; current price around $7.50
• Quarterly revenue: $218 million

Looking ahead, whether Tilray?s European expansion will help bridge the valuation gap remains uncertain. The magnitude of the challenge will hinge on whether the revenue momentum can be converted into sustainable earnings growth in the coming quarters.