High Tide’s Price Target Cut to C$7 as 218 Stores Fuel Expansion Plans
On February 2, Canaccord analyst Luke Hannan lowered High Tide Inc.’s price target to C$7 from C$7.25 while maintaining a Buy rating, citing near-term execution considerations. High Tide now operates 218 Canna Cabana stores, is exploring U.S. CBD licensing under potential Medicare coverage and has entered Germany’s medical cannabis market.
1. Canaccord Maintains Buy Rating, Lowers Price Target
On February 2, Canaccord analyst Luke Hannan adjusted High Tide’s price target to C$7 from C$7.25 while affirming a Buy rating. The modest reduction reflects anticipated near-term execution challenges without altering confidence in the company’s long-term strategy.
2. Canadian Retail Footprint Growth
High Tide operates 218 Canna Cabana stores across Canada, making it the nation’s largest cannabis retailer by revenue. The membership-driven model is designed to drive operating leverage and improve profitability as the domestic market matures.
3. U.S. Market Entry Strategy
Management is pursuing U.S. growth through licensing the Canna Cabana brand and developing CBD products positioned for potential Medicare reimbursement. This measured approach targets the world’s largest cannabis-related market without depending on full federal legalization.
4. International Expansion into Germany
High Tide has initiated operations in Germany’s medical cannabis sector, marking its first foray beyond North America. The entry underscores ambitions to diversify revenue streams and capitalize on emerging international medical cannabis markets.