Shares of High Tide “could easily double”, this analyst says

Beacon Securities analyst Doug Cooper maintained a “Buy” rating and raised his target price for High Tide (High Tide Stock Quote, Chart, News, Analysts, Financials TSXV:HITI) to $7.50 (from $6.50) in an Oct. 15 update, following what he called “record quarterly results and accelerating momentum” across the company’s Canadian operations.

High Tide, Canada’s largest cannabis retailer, operates 207 Canna Cabana stores across five provinces. With 16 new openings this year, the company is on track to reach the upper end of its goal of 20–30 new stores in calendar 2025 and continues to target more than 300 nationwide. Since adopting a membership-based discount club model in 2021, High Tide has grown to more than 2.0 million Cabana Club members and over 10,000 ELITE subscribers.

For the third quarter ended July 31, 2025, High Tide reported record revenue of $149.7-million, up 14% year-over-year and 9% sequentially, with its Canadian brick-and-mortar segment, now 97% of consolidated revenue, up 18% year-over-year.

Cooper said the quarter showed “very positive” key performance indicators, including same-store sales growth of 7.4%, gross margin of 26.8% (up 120 basis points from Q2), net income of $0.8-million, and continued membership growth. Cabana Club members rose 39% year-over-year to 2.15 million, while ELITE subscribers jumped 102% to 115,000, with the conversion rate increasing to 5.3% from 3.7% last year.

High Tide ended the quarter with $64-million in cash and a strengthened balance sheet, part of which funded its post-quarter 51% acquisition of Germany-based Remexian.

“This transaction is not only accretive but also provides a very strategic foothold in Europe,” Cooper said.

He added that all recent KPIs “show a company that is growing, expanding market share and margins, and doing so with strong financial flexibility.”

“On the back of the Q3 results, we are raising our FY25 forecast, specifically our EBITDA forecast to $36-million (from $29-million), driven by better-than-expected profitability from its Canadian cannabis segment as well as two months of contribution from Remexian,” Cooper said.

He said the company’s evolution remains in early stages, predicting further industry consolidation and the introduction of private-label products, which could materially boost margins.

“We believe shares of High Tide could easily double over the next couple of years simply by generating about 25% of Canadian cannabis revenue through private label,” he said.

Cooper said that High Tide should do $36.4-million in Adjusted EBITDA on revenue of $587.5-million in fiscal 2025, improving to $55.6-million on revenue of $768.6-million in fiscal 2026.

“With a strong balance sheet, the number-one retail position in Canada, and multiple growth and margin expansion initiatives underway, we reiterate our Buy rating and raise our target to $7.50.”

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