High Tide (HITI) Stock Forecast & Price Target

High Tide Inc. has demonstrated a positive trajectory in its market share within Canada, with Canna Cabana retail locations growing from an 11% market share to 12% in the latest quarter, indicating a strong competitive position. The company's CabanaClub membership has increased significantly to 1.9 million, showcasing a robust engagement strategy with a notable rise in ELITE subscribers, further enhancing customer loyalty. Additionally, the gross margins have improved to 25.7%, reflecting effective management of e-commerce initiatives and robust retail performance, which positions the company favorably against its peers in the retail sector.

High Tide Inc. reported a revenue of $137.8 million for Q2'25, which fell short of analyst expectations at $138.5 million, marking a 3.3% quarter-over-quarter decline despite an 11.1% year-over-year increase. The company's same-store sales growth experienced a modest uptick to 6.2% year-over-year, while overall retail revenue grew by 16% year-over-year, signaling potential challenges in maintaining momentum amid seasonal fluctuations. Additionally, broader macroeconomic conditions, including potential economic downturns and declining consumer confidence, pose risks to High Tide's sales, particularly as discretionary spending on cannabis products may be adversely affected.