Tilray stock fell 2.5% to $68, after Jefferies launched coverage of the cannabis company Friday morning with an Underperform rating.

The Canadian pot producer has a decent medical-cannabis business, says analyst Owen Bennett, but Tilray’s (ticker: TLRY) rich valuation in the stock market doesn’t accord with its inferior industry positioning versus rivals like Canopy Growth (CGC) and Aurora Cannabis (ACB).

“In...