TLRY Vs CGC Vs ACB: Which Cannabis Stock Gets The Biggest High If Regulatory Fog Clears?

• On Wednesday, TLRY jumped 14%, CGC surged 21%, and ACB gained 7%
• Marijuana remains classified as a Schedule I drug under U.S. law, and a lower-risk classification would ease research barriers and improve financing access.
• The expected regulatory move follows a December executive order directing a review of federal marijuana restrictions.

Shares of Canadian cannabis producers Tilray Brands (TLRY), Canopy Growth (CGC) and Aurora Cannabis (ACB) rallied on Wednesday after reports said that the U.S. may soon reclassify marijuana, putting fresh focus on which cannabis stock stands to benefit the most from a potential regulatory breakthrough.

On Wednesday, TLRY stock jumped 14%, CGC shares surged 21%, and ACB stock gained 7%.

Cannabis Could Move Out Of Schedule I Category

The highly anticipated regulatory move, reported by Axios, citing an admin official familiar with the matter, could mark a major turning point for pot stocks. Marijuana is currently classified as a Schedule I drug under U.S. laws, the same category as substances such as heroin and LSD. 

The potential regulatory move follows a December executive order asking regulators to review federal marijuana restrictions. If approved, cannabis could move into a lower-risk category alongside drugs such as Ketamine and Testosterone.

ACB Tops Upside Among Cannabis Peers

Consensus estimates compiled by Koyfin show that Aurora Cannabis currently carries the strongest valuation upside among the three stocks if sentiment improves following a regulatory change. 

Aurora holds a 12-month average analyst price target of $5.55, implying a 46% upside form current levels. The stock carries one ‘Strong Buy’, two ‘Buy’, and two ‘Hold’ ratings from five covering analysts.

Tilray Brands carries a 12-month average analyst price target of $10.04, implying a 28% upside from the stock’s last close. Analyst sentiment includes three ‘Buy’, six ‘Hold’, and one ‘Strong Sell’ rating across ten analysts.

Meanwhile, Canopy Growth has a 12-month average analyst price target of $1.72, representing a 26% upside from current levels. Coverage includes one ‘Strong Buy’, one ‘Buy’, five ‘Hold’, and one ‘Strong Sell’ rating from eight analysts.

TLRY, CGC, ACB Pursue Different Growth Plans

Alongside the regulatory catalyst, the three producers are pursuing different growth strategies in global markets to boost their businesses. 

Tilray has focused on diversifying beyond cannabis, expanding its medical distribution footprint in Germany through partnerships with Tilray Medical, CC Pharma, 14U Pharma, and the Gesund leben pharmacy network.

The company also acquired key U.S. BrewDog assets and, through a partnership with The Magnum Ice Cream Company, introduced Popsicle Hard beverages, while expanding its medical cannabis portfolio in Australia.

On the other hand, Canopy Growth has focused on strengthening its Canadian operations, including the launch of its Deelish value brand targeting the domestic retail market. It has also agreed to acquire MTL Cannabis in a C$125 million transaction to add a profitable, adjusted-EBITDA-positive business.

Meanwhile, Aurora has prioritized international medical cannabis markets, expanding its portfolio across Australia and New Zealand, securing EU plant variety rights for proprietary cultivars and launching the Daily Special medical cannabis brand in Germany as part of its export-led strategy.

How Do Retail Traders Feel About TLRY, CGC, ACB?

On Stocktwits, retail sentiment for all three cannabis stocks was ‘extremely bullish’ amid ‘extremely high’ message volume.

Over the past year, TLRY shares have climbed 72%, CGC has gained 17%, while ACB has declined 11%.

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