High Tide (HITI) Stock Forecast & Price Target

High Tide Inc. has demonstrated notable growth in market share, with Canna Cabana retail locations increasing their Canadian market share to 12%, up from 11% the previous quarter, indicating a solid competitive position. The company also reported an impressive jump in CabanaClub membership to 1.9 million, including a significant rise in ELITE subscribers, reflecting strong consumer engagement and loyalty within its e-commerce and retail segments. Furthermore, the company achieved gross margins of 25.7%, an increase of 80 basis points quarter-over-quarter, bolstered by strategic initiatives aimed at enhancing e-commerce sales while maintaining operational efficiencies.

High Tide Inc reported revenue of $137.8 million for 2Q'25, which fell short of consensus expectations by $0.7 million and represented a 3.3% decline quarter-over-quarter despite an 11.1% increase year-over-year. The company's same-store sales (SSS) growth showed improvement at 6.2% year-over-year, but the quarterly decrease reflects ongoing challenges in the cannabis market, which are compounded by macroeconomic factors that may dampen consumer confidence and discretionary spending. Additionally, although High Tide's retail revenue demonstrated growth at 16% year-over-year, the potential for an economic downturn raises concerns about sustaining this momentum, casting uncertainty on the company's future performance.