Calgary-based High Tide Inc (CVE: HITI) (NASDAQ: HITI) is the number one Canadian cannabis stock, a researcher from Ventum Financial has determined.
Analyst Andrew Semple says the cannabis operator has surpassed the firm’s earnings expectations for 12 consecutive quarters and that the latest financial results were exemplary. He has given the stock a definitive Buy rating with a high share target of C$8.50.
“High Tide shrugged off tough Canadian cannabis market conditions [May and June retail cannabis sales down by 2.8 per cent and 6.6 per cent year-over-year, respectively] to deliver another quarter of strong brick-and-mortar sales growth and market share expansion,” Semple said.
He emphasized that High Tide was on track to take a 15 per cent share of the provincial markets in which it operates. The cannabis operator currently holds a 12 per cent market share in Alberta, British Columbia, Saskatchewan, Ontario and Manitoba. It only held 10 per cent one year ago.
High Tide chief executive Raj Grover expressed his satisfaction with the company’s fiscal 2024 Q3 results in a LinkedIn post this week.
“Today we presented our third quarter results and the news is good,” Grover described. “In fact, it’s really good.” He says that High Tide’s cash balance is higher than ever before at C$35.3 million.
“High Tide remains our highest conviction idea in Canadian cannabis,” Semple explained. The cannabis distributor has opened up 21 new stores this year and is shooting to have nine more up and running by 2025. There are a total of 183 throughout the country.
High Tide $HITI is being called the top cannabis stock by Ventum! With a price target of $8.50 and a potential upside of 194%, they’re crushing it with record revenue and strong growth. 🌿💚#HighTide #cannabisculture https://t.co/NCt9UaHlyB
— Mario Iliasi (@MarioIliasi) September 19, 2024
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High Tide partners with marijuana events company in Alberta
This month, the cannabis distributor initiated a collaboration with Positive Intent Events to capitalize on the new market for pop up sales at adults-only festivals and trade shows.
The Government of Alberta has permitted cannabis sales at concerts and other gatherings since the end of January this year. This move received favourable reactions from many who believe previous restrictions were cumbersome and unnecessary.
Cannabis companies now have additional opportunities to promote their products in the prairie province.
New blunts on the way
High Tide revealed last week that it has a series of new goodies that will become available soon.
“New and innovative cannabis products, such as raspberry chocolate diamond infused rose petal blunts and a mango honey live rosin chamomile petal blunt, will launch in the coming weeks,” Grover said in a statement Sept. 12.
The company’s Canna Cabana stores also started selling “Queen of Bud” smoke eliminating candles this month throughout the provinces in which High Tide operates. High Tide acquired the Queen of Bud brand in March.
rowan@mugglehead.com
