Haywood launches coverage of High Tide with a “Buy” rating

Haywood Capital Markets analyst Neal Gilmer initiated coverage on High Tide (High Tide Stock Quote, Chart, News, Analysts, Financials TSXV:HITI) with a “Buy” rating and an $8.00 target, highlighting the company’s entrenched Canadian retail dominance and emerging international growth profile.

“In our opinion, High Tide has demonstrated the strong retail prowess to continue to be the leader in Canada. In addition, the Company now has international exposure in Germany, with possible further expansion in the future,” Gilmer said. “We recommend investors have exposure based on its revenue growth profile and positive EBITDA and cash flow.”

High Tide is Canada’s largest cannabis retailer, operating under its flagship Canna Cabana banner with 207 branded stores across five provinces. Since shifting to a membership-based discount club model in late 2021, the chain has amassed more than 2.0 million Cabana Club members and 104,000 ELITE subscribers. Same-store sales have climbed 132% since the transition, with average store annual revenue of $2.8-million, or $1,648 per square foot.

On Sept. 2 High Tide acquired a 51% stake in Remexian Pharma GmbH, a privately held pharmaceutical distributor in Germany, marking its formal entry into the European medical cannabis market. Gilmer described the deal as “highly accretive,” estimating it could add about $100-million in annual revenue while diversifying operations and establishing a strategic German foothold.

He also pointed to the company’s balance sheet flexibility, with pro forma cash and equivalents of $47.6-million as of September, total debt of $69.4-million, and net debt of $21.8-million, with no maturities due in the next two years.

Gilmer applies a 1.2 times EV/revenue multiple on his fiscal 2026 forecast, discounted by 15%. He noted High Tide is currently trading at 0.6 times his 2026 revenue estimate, compared with Canadian peers at about 1.2 times.

He forecasts Adjusted EBITDA of $32.4-million on $594.8-million in revenue in fiscal 2025, improving to $65.0-million on $754.6-million in fiscal 2026.

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