Shares of cannabis company Tilray Inc. fell 7% in premarket trade Friday, after the cannabis stock was initiated with an underperform rating by Jefferies, saying it struggles to justify its current valuation. Analyst Owen Bennett assigned the stock a $61 price target, which is 12% below its current trading level. "We appreciate it is well placed in medical but future value here will be driven by IP for which (there is) little visibility near term," Bennett wrote in a note. "Its share structure also raises risk of increased volatility." As a company with global ambitions, Tilray needs to be compared with Canopy Growth Corp. and Aurora Cannabis Inc. , the analyst wrote, but there are a number of areas in which it lags those peers. The company's share of Canada's medical market is not in the top 4 and recent consumer feedback is not inspiring, while the company's approach to the newly legal recreational market "does not appear as well thought through," he wrote. Tilray stock has fallen 1.2% in 2019 to date, while the S&P 500 has gained 0.4%.