By Christine Brown, Published on October 3, 2023 on www.tipranks.com

In a report released today, Andrew Semple from Echelon Wealth Partners maintained High Tide (HITI – Research Report) to a Buy, with a price target of C$9.00.

Andrew Semple has assigned a Buy rating to High Tide Inc. based on a multitude of contributing factors. The company has consistently demonstrated impressive sales and earnings growth, establishing itself as a leader in the Canadian cannabis industry amid challenging times. The company’s success is underscored by its ranking as the 38th fastest-growing Canadian company and as the second-fastest growing firm with sales surpassing $250 million. Furthermore, High Tide has been outperforming revenue estimates for eight consecutive quarters, and recently achieved positive FCF for the first time, ahead of management’s projected timeline.

High Tide’s retail strategy, particularly its discount club, is another reason behind Semple’s positive rating. The strategy, complemented by its expanding retail ecosystem and the launch of Cabanalytics Consumer Insights, is fostering customer loyalty and forging stronger relationships with Canadian Licensed Producers. The company’s financial standing is robust, with a cash balance of $25.7 million (14% of the current market cap), enabling it to seize potential consolidation opportunities at discounted valuations. The Cabana Club loyalty program has achieved substantial growth, and the company has a promising growth outlook that Semple believes is not fully reflected in the stock’s current price.

According to TipRanks, Semple is an analyst with an average return of -3.3% and a 30.85% success rate. Semple covers the Consumer Cyclical sector, focusing on stocks such as Verano Holdings, High Tide, and Cresco Labs.

In another report released on September 18, Canaccord Genuity also maintained a Buy rating on the stock with a C$4.25 price target.