Tilray Inc. (TLRY) shares soared 5.04% in a 24-hour period, capping off a remarkable trading day that saw the stock surge by over 20% at one point. The cannabis company's stock has been on an upward trajectory for three consecutive sessions, outperforming the broader market amid renewed optimism in the sector.

The significant rally was primarily driven by two key factors. Firstly, Jefferies analyst Kaumil Gajrawala maintained a Buy rating on Tilray while raising the price target from $1.50 to $2.00, signaling increased confidence in the company's prospects. Secondly, growing optimism surrounding potential U.S. cannabis reform has buoyed investor sentiment across the industry.

Reports suggest that marijuana could be rescheduled to Schedule III of the Controlled Substances Act before year-end, a move that would significantly benefit cannabis companies like Tilray by allowing them to take advantage of tax write-offs and credits. Additionally, there's increasing speculation about the passage of the SAFER Banking Act, albeit likely in the 2025-2026 session. These potential regulatory changes have sparked renewed interest in cannabis stocks, with Tilray leading the charge. The stock's trading volume surged to more than double its 50-day average, underscoring the heightened investor activity surrounding these developments.