High Tide Trades at 0.38x Revenue with C$6.50 Target, Expands to 219 Stores
TD Securities initiated coverage of High Tide Inc. with a Buy rating and C$6.50 price target, highlighting market share leadership, same-store sales growth and a 2.5 million-member loyalty program. High Tide now operates 219 Canna Cabana stores across Canada and trades at 0.38x forward revenue and 10.6x 2027 earnings.
1. TD Securities Initiates Coverage
On February 24, High Tide received a Buy rating and C$6.50 price target from TD Securities, which identified the company as its top cannabis pick. The analysis cited leading KPIs such as market share dominance, robust same-store sales growth and strong store economics as key differentiators.
2. Store Expansion
On February 9, High Tide opened a new Canna Cabana retail location in Scarborough, Ontario, bringing its total to 219 stores nationwide, including 95 in Ontario. The growing retail footprint reinforces the company’s scale advantages and strengthens its national brand presence.
3. Loyalty Program Growth
High Tide’s loyalty program has rapidly expanded to 2.5 million members, driving repeat visits and higher basket sizes. Management views this program as a core competitive asset that enhances store economics and supports sustained revenue growth.
4. Valuation and Trading Multiples
High Tide trades at just 0.38x forward revenue and 10.6x 2027 earnings, reflecting a discounted valuation despite strong fundamentals. The company remains free cash flow positive with cash exceeding debt, supporting strategies such as cash-secured puts at a net purchase price of $2.34 for income investors.