SNDL stake in High Tide validates its business model, says Roth

Roth MKM keeps a Buy rating and $4.50 price target on High Tide (HITI), saying SNDL‘s (SNDL) 5.4% stake disclosed in a 13-G filing last week validates High Tide’s business model and opportunity ahead, though given Sundial’s history with passive stakes in other operators, the firm cannot infer any intentions beyond this filed position. Should Sundial have large aspirations, a few regulatory issues – including Ontario’s limits on vertical integration and market share concentration in Alberta – could emerge, the analyst tells investors in a research note.