High Tide’s Strong Market Position and International Expansion Drive Buy Rating
Neal Gilmer has issued a Buy rating for High Tide, citing its strong market position and growth potential. High Tide, a leading cannabis retailer in Canada with 207 stores, has seen a 132% increase in same-store sales since adopting a membership-based discount model. The company's acquisition of a 51% stake in Remexian Pharma GmbH in Germany is expected to generate $100 million in revenue, enhancing its international presence and supporting its operations in the European medical cannabis market.
Neal Gilmer has given his Buy rating due to a combination of factors that highlight High Tide’s strong market position and growth potential. High Tide is recognized as a leading cannabis retailer in Canada, with its flagship brand, Canna Cabana, operating 207 stores across five provinces. The company’s transition to a membership-based discount club model has significantly boosted its same-store sales by 132% since October 2021, demonstrating its ability to outperform peers in the industry.
Additionally, High Tide’s strategic expansion into the international market, particularly with its acquisition of a 51% stake in Remexian Pharma GmbH in Germany, presents a promising opportunity for growth. This acquisition is expected to contribute approximately $100 million in topline revenue, enhancing the company’s scale and diversifying its operations. By establishing a presence in the European medical cannabis market, High Tide is well-positioned to balance its cash-generative Canadian operations with new international ventures, further supporting the Buy rating.
