Neal Gilmer, an analyst from Haywood, has initiated a new Buy rating on High Tide (HITI).
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Neal Gilmer has given his Buy rating due to a combination of factors that highlight High Tide’s strong market position and growth potential. High Tide is recognized as a leading cannabis retailer in Canada, with its flagship brand, Canna Cabana, operating 207 stores across five provinces. The company’s transition to a membership-based discount club model has significantly boosted its same-store sales by 132% since October 2021, demonstrating its ability to outperform peers in the industry.
Additionally, High Tide’s strategic expansion into the international market, particularly with its acquisition of a 51% stake in Remexian Pharma GmbH in Germany, presents a promising opportunity for growth. This acquisition is expected to contribute approximately $100 million in topline revenue, enhancing the company’s scale and diversifying its operations. By establishing a presence in the European medical cannabis market, High Tide is well-positioned to balance its cash-generative Canadian operations with new international ventures, further supporting the Buy rating.